The sharp YoY decline in gains on sales and fleet utilization warrants close monitoring of aircraft trading activity and lessee health. Next quarter's results will be key to determining whether this is a transient soft patch or start of a longer downturn in the aviation leasing cycle.
Price Chart
Executive Summary
Aircastle reported Q1 2026 results with total revenues of $236M (down ~9% YoY) and net income of $34M (down 32% YoY), driven by lower gains on aircraft sales and reduced maintenance revenue. Lease rental revenue grew 6% but was insufficient to offset declines in other revenue streams, signaling a weakening operational quarter despite the prior year's strong momentum.
Key Facts
- Total revenues of $235.5M, down 9.4% from $259.8M in Q1 2025
- Net income of $33.6M, down 31.8% from $49.3M YoY
- Lease rental revenue increased 6% to $194.6M from $183.0M
- Gain on sale of flight equipment fell to $10.9M from $30.3M
- Adjusted EBITDA of $208.2M vs $231.9M in Q1 2025
- Fleet utilization declined to 97.9% from 99.5% YoY
- Operating cash flow $97.7M vs $127.9M in prior year period
- Raised $1B in new financings; 98% of total debt unsecured
- Adjusted net debt-to-equity of 2.2x
- Total liquidity of $2.6B as of July 1, 2026
Financial Impact
Revenue down ~$24M and net income down ~$16M YoY on a $236M revenue base, representing a 9% revenue miss and 32% net income decline relative to prior year.
Risk Factors
- Sustained fuel cost pressure on airline customers impairing lease payments and extensions
- Further reduction in aircraft sale gains if secondary market values decline
- Potential decrease in fleet utilization if airlines cut capacity
- Geopolitical tensions in the Middle East impacting airline operations
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-047770 |
| Document: ayr-20260709.htm | 0001628280-26-047770 |
| Document: 0001628280-26-047770-index-headers.html | 0001628280-26-047770 |
| Document: 0001628280-26-047770-index.html | 0001628280-26-047770 |
| Document: 0001628280-26-047770.txt | 0001628280-26-047770 |
| 8-K Data (Synthetic) | 0001628280-26-047770 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 14, 2026 13d ago | 8-K | — | awaiting T+20 | — | — |
Jul 9, 2026 15w ago | 8-K | — | awaiting T+20 | — | — |
May 29, 2026 21w ago | 8-K | — | awaiting T+20 | — | — |
Apr 28, 2026 26w ago | 8-K | — | awaiting T+20 | — | — |
Apr 21, 2026 27w ago | 8-K | — | awaiting T+20 | — | — |
Apr 16, 2026 27w ago | 8-K | — | awaiting T+20 | — | — |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers