Profits up at lessor Air Castle as it continues to reduce freighter fleet
12 / 02 / 2016
Aircraft lessor Air Castle, which hit the headlines with the lease of an aircraft to CargoLogicAir last year, saw a double-digit increase in profits in 2015 despite revenues remaining flat.
AirCastle, which includes 11 freighters in its fleet of 162 aircraft, saw net income for 2015 increase by 20.7% year on year to $121.7m, while revenues were up by 0.1% to $819.2m.
With regards to revenues, it said lease rental was up on the previous year, but this was largely offset by a reduction in maintenance fees.
The increase in net income was put down to an early repayment charge of $36.6m in 2014 as it paid off debt early.
On an adjusted basis it would actually recorded a decrease in net income.
During the year it sold four freighter aircraft, although did not disclose type. In an investor call, it said it expected to scrap a further six older converted freighters when they come off lease over the next two years.
The lessor has been gradually moving away from the freighter market over recent years as it looks to grow its current generation narrowbody fleet.
At the start of 2010 it operated 25 freighter aircraft compared with 11 today.