AYR 10-K & 10-Q changes, risk factors and insider trading

•The concentration of our portfolio around a specific aircraft or engine type could have a material adverse affecteffect on our business should the aircraft or engine type encounter disruptions, manufacturing and quality control issues, or other difficulties.

•operating costs, including the price and availability of jet fuel, labor costs and insurancethe costscost, availability, and scope of insurance coverages;

•aircraft accidents or other safety-related events;

•the continuing availability of government support through subsidies, loans, guarantees, equity investments;

•the impact of climate change and emissionsrelated compliance costs on demand and supply of air travel;

•governmental regulation of,of airlines, including noise regulations, emissions regulations, climate change initiatives, and aircraft age limitations.

Many of our lessees are exposed to currency risk as they earn revenues in local currencies while a significant portion of their liabilities and expenses, including fuel, debt service, and lease payments are denominated in U.S. dollars. If the local currency is devalued, our lessees may not be able to increase revenue sufficiently to offset the impact of exchange rates on these expenses. In addition, the implementation of strict currency controls by local governments may make it difficult for our lessees to access U.S. dollars. Currency depreciation and currency controls could impact the ability of our customers to meet their contractual obligations in a timely manner. Shifts in foreign exchange rates can be significant, are difficult to predict, and can occur quickly.

Fuel costs represent a major expense to airlines and fluctuateare widely.subject to significant volatility. Airlines may not be able to successfully manage their exposure to fuel prices through hedging or other risk management strategies, and significant changesincreases could materially affect their operating results. Airlines may not be able to pass on increases in fuel prices to their customers through higher fares, particularly in competitive markets or during periods of weakened demand. Fuel price volatility may be exacerbated by increasinggeopolitical fares.events, including armed conflicts, political instability or disruptions to global energy supply, which can result in sudden and sustained increases in fuel costs. High fuel prices may also have a general impact on consumer spending and adversely impactreduce demand for air transportation.

Investors should expect some lessees to experience payment difficulties, particularly in difficult economiceconomic, financial or operating environments. As a result of their financial condition and lackconstraints ofon liquidity, lessees may be significantly in arrears in their rental or maintenance payments. Liquidity issues are more likely to lead to airline failures in theduring periods of largesignificant declines in air traffic declines,traffic, financial system distress, volatile fuel prices,prices and broader economic slowdown.slowdowns. Given the size of our aircraft portfolio, we expect that from time to time some lessees will be slow or will fail to make their payments in full under their leases.

We may not correctly assess the credit risk of a lessee at the time of lease origination, or that risk could change over time. We may not be able to charge or maintain risk-adjusted lease rates, and lessees may not be able to continue to perform their financial and other obligations under our leases in the future. We may experience some level of delinquency under our leasesleases, and defaultlevels levelsof delinquencies and defaults may increase over time. A lessee may experience periodic difficulties that are not financial in nature, which could impair its performance of maintenance obligations under the leases. These difficulties may include the failure to perform required aircraft maintenance and labor-management disagreements or disputes.

While we have the right to repossess the aircraft and to exercise other remedies upon a lessee default, repossession of an aircraft couldmay lead toinvolve significant time and cost. Such costs for us. Those costsmay include legal and other expenses of court or other governmental proceedings, particularly if the lessee is contesting the proceedings, and costs to obtain possession, deregistration of the aircraft and flight and export permissions. Delays resulting from these proceedings would increase the period of time during which the aircraft is not generating revenue. We may also incur maintenance, refurbishment or repair costs that a defaulting lessee has failed to undertake or pay and that are necessary to put the aircraft in suitable condition for re-lease or sale. We may be required to pay off liens, claims, taxes and other governmental charges to obtain clear possession and to remarket the aircraft for re-lease or sale. We may also incur maintenance, storage or other costs while we have physical possession of the aircraft.

We may suffer other adverse consequences due to a lessee default and the repossession of the aircraft. Our rights upon a lessee default vary significantly depending upon theby jurisdiction and may include the need to obtain a court order for repossession of the aircraft and consents for deregistration or re-export of the aircraft. When a defaulting lessee is in bankruptcy, protective administration, insolvency or similar proceedings, additional limitations may apply. Certain jurisdictions give rights to the trustee in bankruptcy or a similar officer to assume or reject the lease or to assign it to a third party, or entitle the lessee or another third party to retain possession of the aircraft without paying lease rentals or without performing all of the obligations under the lease. There can be no assurance that jurisdictions that have adopted the Cape Town Convention will enforce it as written. Certain of our lessees are owned in whole or in part by government-related entities, which could complicate our efforts to repossess the relevant aircraft. Accordingly, we may be delayed in, or prevented from, enforcing our rights under a lease and in re-leasing or selling the affected aircraft.

When a lessee is late in making payments or fails to make payments in full, we may elect to or may be required to restructure the lease. Restructuring may involve anything from a simple rescheduling of payments to the termination of a lease without receiving all the past due amounts. If requests for payment restructuring or rescheduling are granted, reduced or deferred rental payments may be payablereduced, deferred or otherwise modified over all or some part of the remaining term of the lease, and the terms of any revised payment schedules may be unfavorableless favorable or such payments may not be made. We may be unable to agree upon acceptable terms for any requested restructurings and as a result may be forced to exercise our remedies under those leases and we may be unable to repossess our aircraft on a timely basis. If we, in the exercise of our remedies, repossess the aircraft, we may not be able to re-lease the aircraft promptlypromptly, at favorable rates, or at all.

As a result of adverse economic conditions, airlines may be forced to reorganize. Bankruptcies and reduced demand may lead to the grounding of significant numbers of aircraft and negotiated reductions inor deferrals of aircraft lease rental rates, with the effect of depressing aircraft market values. Additional grounded aircraft and lower market values would adversely affect our ability to sell certain of our aircraft on favorable terms, or at all, or re-lease other aircraft at favorable rates comparable to the then current market conditions, which collectively would have an adverse effect on our financial results. We may not recover any of our claims or damages against an airline under bankruptcy or insolvency protection.

In the normal course of business, liens that secure the payment of airport fees and taxes, custom duties, air navigation charges (including charges imposed by Eurocontrol), landing charges, crew wages, repairer’s charges, salvage or other liens, are likely,may, depending on the jurisdiction, to attach to the aircraft. These liens may secure substantial sums that may, in certain jurisdictions or for certain types of liens (particularly “fleet liens”), exceed the value of the relevant aircraft. Although the financial obligations relating to these liens are the responsibility of our lessees, if they fail to fulfill their obligations, these liens may attach to our aircraft and ultimately become our responsibility. Until these liens are discharged, we may be unable to repossess, re-lease or sell the aircraft or unable to avoid detention or forfeiture of the aircraft.

Through our lessees and the countries in which they operate, we are exposed to the specific conditions and associated risks of those particular jurisdictions. An adverse economiceconomic, political, or politicalregulatory event or a deterioration in operating conditions in any region or country in which our lessees or our aircraft are concentrated could affect the ability of our lessees to meet their obligations to us or expose us to variousheightened legal or political risks associated with the affected jurisdictions, which could have a material adverse effect on our financial results.

Emerging markets may be more vulnerable to economic and political problems, such as significant fluctuations in gross domestic product, interest and currency exchange rates, government instability, nationalization and expropriation of private assets, unfavorableless predictable or less developed legal and judicial systems, change in law regarding recognition of contracts or ownership rights, changes in governments or government policy and the imposition of taxes, tariffs or other charges by governments. The occurrence of these events may adversely affect our ownership interestinterests in anaircraft, aircraftour ability to enforce our contractual rights, or the ability of our lessees to meet their lease obligations. For the year ended February 28, 2025,2026, 50 of our lessees, which operated 126130 aircraft and generated 54%51% of our lease rental revenue, are domiciled or habitually based in emerging markets.

•manufacturer production levels, production quality control issuesissues, and technical or other difficulties;

These and other factors may produce movements in aircraft values and lease rates, which wouldcould impactadversely ouraffect costthe economics of acquiringaircraft aircraft, or which mayacquisitions, result in lease defaultsdefaults, or delay or prevent aircraft from being re-leased or sold on favorable terms.

Any decrease in the values ofof, andor lease rates forfor, commercial aircraft which may result from the above factors or other unanticipated factors may have a material adverse effect on our financial results.

There are inherent climate-related risks wherever our business is conducted. Changes in market dynamics, stakeholder and financier expectations, and local, national and international climate change policies,policies and regulatory frameworks all have the potential to disrupt our business and operations. Various countries, including the United States and countries in the European Union (“E.U.”), have announced sustainability initiatives that, among other things, aim to reduce carbon emissions, explore sustainable aviation fuels and establish sustainability measures and targets. Developing climate and environmental regulations may impact the types of aircraft we target for investment and the demand for certain aircraft and engine types, and could result in a significant increase in our costs and expensesexpenses, including compliance, reporting, operational and capital costs, and adversely affect future revenue, cash flows and financial performance. Failure to address climate change or to adapt our business strategy to evolving climate-related expectations could result in greater exposure to economic and other risks and impact our ability to adhere tomeet developing climate goals.

New aircraft types thator are introduced to the market,variants, and higher production levels of new technology aircraft types that have already been launched, may cause certain aircraft in our existing aircraft portfolio to become less desirable to potential lessees or purchasers. TheNew technology aircraft may shorten the economic lives of certain aircraft in our portfolio or limit demand for those aircraft. Certain new technology aircraft programs, including the Boeing 737 MAX and 787 and the Airbus A220, A320neo family, A330neo and A350A350, are all currently in production. The Boeing 777X is expected to enter service in 2026.2027. TheIn addition, the Commercial Aircraft Corporation of China Ltd. has developed aircraft models thatintended willto compete with thecertain narrow-body aircraft manufactured by Airbus A320 family aircraft, the Boeing 737 and theBoeing, Embraeras E-Jet.well as regional jet aircraft manufactured by Embraer. These new technology aircraft types, and potential variants of these types, may reduce the desirability of, and have an adverse effect on the residual valuevalues and future lease rates of, older aircraft types and variants. The development of more fuel-efficient engines could make aircraft in our portfolio with less fuel-efficient engines less attractive to potential lessees.

Sustainable Aviation Fuel has been identified by IATA as the primary means by which IATA’s NetZero 2050 goal is to be achieved. Many governments, including the E.U., the United Kingdom, Brazil and Japan, have mandated aviation operators employ benchmarked percentages of SAF “drop in” blend on future commercial flights. A significant increase in SAF production will be required to make these benchmarks attainable, and at present, the cost of SAF is almostapproximately two to three times the cost of fossil jet fuel. Meeting mandated SAF blends could pose a significant operating cost to our customers.

In recent years, there has been an increased expectation for companies across many industries to balance commercial interests with conscientiousresponsible ESG performancepractices focused on accountability to stakeholders. In recognition of this trend, organizations are sometimes reviewedevaluated by rating agencies using varyingdiffering and evolving sustainability evaluation criteria.criteria, Inwhich, in some cases, these reviews resultresults in ESG-specific ratings.ratings Institutionsor whoscores. Certain institutional investors and lenders, including those that invest in our unsecured notes or with whom we haveprovide secured lending facilitiesfacilities, may be required or may choose to consider theESG-related ESG risk of their lending portfolios andrisks in someallocating cases,capital. thisAs mighta requireresult, themthey tomay limit exposure to certain industryindustries segments.or companies based on ESG considerations. Our ability to obtain financing at strategic rates could be impacted by these perceptions and ratings or by any developing key performance indicators which the Company and financiers may develop over time.

More recently, there has been aincreased growingdivergence anti-ESGin ESG-related regulation, policy and sentiment across jurisdictions, including differing approaches in the United States,States and in certain international markets, which may conflict with international/E.U. regulatory requirements, resultingresult in regulatory or compliance uncertainty. Our efforts to implement ESGESG-related initiativesinitiatives, and the speedtiming and manner of their adoptionadoption, may be impacted by broader changes in ESG sentiment,sentiment (including those in opposition to ESG principles), policy shifts and divergence of regulations, policies and practices with respect to these matters. If we are unable to meet ESG-related standards or expectations, whether established by us or third parties, it could result in adverse publicity, reputational harm, and/or loss of investment, which could adversely affect our business, results of operations, financial condition, and liquidity.

In general, the costs of operating an aircraft, including maintenance expenditures, tend to increase withas thean ageaircraft of the aircraft.ages. Additionally, older aircraft typically are less fuel-efficient than newer aircraft and may be more difficult to re-lease or sell, particularly if, due to increasing production rates by aircraft manufacturers or airline insolvencies, older aircraft are competing with ana excessgreater supply of newer aircraft in the lease or sale market. Expenses like fuel, carboncarbon-related charges, aging aircraft inspections, maintenance or modification programs and related airworthiness directives couldmay makereduce the operationeconomic viability of operating older aircraft less economically viable and may result in increased lessee defaults. We may also incur some of these increased maintenance expenses and regulatory costs upon acquisition or re-leasing of our aircraft. Re-leasingIn addition, the re-leasing of larger wide-body aircraft may result in higher reinvestment and maintenance expenditures than re-leasing narrow-body aircraft.

A number of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. Some competitors may have a lower cost of funds and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances, lower investment return expectationsrequirements or different riskassessments orof credit, residual value assessments,or market risk, which could allow them to consider a wider variety of investments, establish more relationships, bid more aggressively on aviation assets available for sale and offer lower lease rates or sales prices than we can. Some of our competitors may provide financial services, maintenance services or other inducements to potential lessees or buyers that we cannotare unable or unwilling to provide. As a result of competitive pressures, we may not be able to take advantage of attractive investment opportunities, and we may not be able to identify and make investments that are consistent with our investment objectives. Additionally, the barriers to entry in the aircraft acquisition and leasing market are comparatively low, and new entrants appear from time to time. We may not be able to compete effectively against present and future competitors in the aircraft acquisition, leasing or sales market.

Our leases may require the lessee to make periodic payments to us during the lease term to provide reserves for major maintenance events. In thesesuch leasescases, therewe isgenerally have an associated liability for usobligation to reimburse the lessee afterfor suchqualifying maintenance isonce performed. Other leases do not provide for any periodic maintenance reserve payments toand, beinstead, madetypically torequire us.the Typically, these lessees are requiredlessee to make payments at the end of the lease term. However, in the eventif such lessees default, the value of the aircraft could be negatively affected by the maintenance condition and we may be required to fund the entire cost of performing major maintenance on the relevant aircraft without having received compensating maintenance payments from these lessees.

A number of our lessees must obtain licenses, consents or approvals from governmental or regulatory authorities in order to import or operate the aircraft or comply with the terms of their leases. These may include consents from governmental or regulatory authoritiesrequired for certain payments under the leases and for the import, export or deregistration of the aircraft. Subsequent changes in applicable law or administrative practice may increase such requirements and a governmental consent, once given, might be withdrawn. Consents needed in connection with future re-leasing or sale of an aircraft may not be forthcoming. Any of these events could adversely affect our ability to re-lease or sell aircraft.

Our business relies on the global movement of aircraft across international borders, and our airline customers operate in a highly interconnected global marketplace. TheMore unpredictablerecently, naturecertain ofgovernments have introduced new tariffs andor expanded existing trade policiesand protectionist measures, and thesuch potentialmeasures forcontinue rapidto escalationevolve, of tensions createscreating ongoing uncertainty that may impactaffect our operations. IncreasingProtectionist protectionist sentimentspolicies in key markets worldwide, including the U.S.,United States, the E.U. and China, may impact where we can source aircraft acquisitions, place and deliver aircraft, and sell or dispose of aircraft and other flight equipment. The implementation and enforceability of new,trade restrictions, or expansionthe expansion, modification or re-imposition of existing,existing tariffs and other trade barriers may negatively impact our financial performancebusiness and operations,financial performance, including, but not limited to:

•tariffs on aircraftaircraft, engines and related componentscomponents, which may increase aircraft acquisition costscosts, maintenance, expenses or maintenanceoperating expenses to us, where such expenses arecosts borne by us,us andor our lessees;

•retaliatory or reciprocal trade measures may disrupt global supply chains for aircraft and engine manufacturers, potentially delayingresulting aircraftin deliveriesdelivery delays, reduced production rates or increased costs;

•increasedrestrictions, scrutinyapprovals or other regulatory requirements affecting cross-border leasing, financing, ownership or transfer of leasingaircraft, arrangements in certain jurisdictionswhich could complicatecomplicate, delay or prevent transactions or limit our ability to place aircraft with certain lessees;

•trade restrictions or route-specific limitations may limitimpair our lessees' ability to operate profitably onin certain routes,markets, potentially affecting their financial stabilitycondition and ability to meet lease payment obligations; and

Given the current volatilityongoing and complexitydynamic nature of global trade policies,policies and related uncertainties, it is difficult to predict exactlythe how,scope, andtiming, toduration, whatenforceability extent, such policies mayor impact ourof business,tariffs, trade restrictions or related government actions, or their cumulative effect on us, our lessees andor aircraft and engine manufacturers. However, unfavorable governmentUnfavorable trade restrictions,policies, including tariffstariffs, export and import restrictions, sanctions or other regulatory controls on imports and exports,uncertainties regarding the ability to obtain refunds for previously paid tariffs that have been invalidated, may adversely affect our business, financial condition, and results of operations.

Air travel can be disrupted, sometimes severely, by the occurrence of unexpected events outside of our and our lessees’ control. The occurrence of any such event, or multiple such events, could cause our lessees to experience decreased passenger demand, tohigher incuroperating higherand financing costs and to generate lower revenues, which could adversely affect their ability to make lease payments to us. ThisThese in turnconditions may lead to lease restructuringsrestructurings, anddefaults repossessionsor andrepossessions, could result in reductions toreduce our lease revenues and cash flows, and causecould require us to record impairment charges to the extent we cannot recover our investment in ouraffected aircraft assets.

Passenger demand for air travel has been mostmaterially recently impactedaffected by epidemic and pandemic diseases. Most recently, the COVID-19 pandemic and,resulted in thea past,significant bydecline otherin epidemicglobal diseasesair suchtravel aslevels, and prior epidemics and health events, including severe acute respiratory syndrome, bird flu, swine flu, the Zika virus, and Ebola.Ebola, Thesehave also negatively affected air travel. Such events have resulted, and similar events in the future may result, in a prolonged periodperiods of depressed air traffic levels,traffic, which may lead to weaker demand for certain aircraft types as well as airline customer defaults, bankruptcies or reorganizations. At the onset of the COVID-19 pandemic in early 2020, air travel dropped to approximately 20% of pre-pandemic levels, according to IATA, and did not return to historical levels until 2023. To the extent our lessees dolack not have substantialsufficient liquidity to sustainwithstand such periods, and if our customers are unable to obtain sufficient fundsfunding from private, government or other sources, we may needbe required to provide lease concessionsconcessions, to customers in the form ofincluding deferrals or broader lease restructurings.restructurings, These types of concessions in the futurewhich may negatively impact our business, financial condition, cash flows and results of operations. Future epidemic diseasesor and otherpandemic diseases, or the fear of such eventsevents, could similarly provoke responses that negatively affect passenger air travel.

The airline industry has also been disrupted by terrorist attacks,attacks and by war or armed hostilities between countries or non-state actors, includingas well as the threat or fear of such events. These events may lead to decreasedreduced passenger demand and revenuerevenues due to safety concerns, the inconvenience of additional security measures, theincreased fuel prices, higher price of jet fuel, increased financing costs, and difficulty in raising funds on favorable terms, or at all. In addition, these events may lead to higher costs of aircraft insurance coverageor reduced availability of coverage, for future claims caused by acts of war, terrorism, sabotage, hijacking and other similar perils, and affect the extent to which such insurance has been or will continue to be available.perils. They may also lead to higher insurance costs due to the increased security measures and potential special charges, such as those related to the impairment of aircraft and other long-lived assets stemming from the above conditions. More recently, thearmed conflicts and regional instability, including in parts of Russia, Ukraine and the Middle EastEast, have and may continue to have adverse effects on macroeconomic conditions, including fuel prices, the availability and cost of insurance, security conditions, currency exchange rates and financial markets. Airspace closures have and may require certain of our airline customers to continue re-routing flights to avoid such airspace which has resulted in increased flight times and fuel costs. Prolonged periodsor ofexpanded conflictconflicts could result in new or additional sanctions, embargoes, further escalation or regional instability, and geopolitical shifts. Such geopolitical instability and uncertainty could have a negative impact on our ability to lease aircraft, collect payments from, and support customers in certain regions based on trade restrictions, embargoes and export control law restrictions, and logistics restrictions, including closures of air space, and could materially adversely affect our business, financial condition, and results of operations.

Demand for air travel or the inability of airlines to operate to or from certain regions due to the occurrence of naturalNatural disasters or other natural phenomena, such as severe weather conditions, floods, earthquakes or volcanic eruptions, may also disrupt air travel or airline operations in affected regions and could have an adverse effect on our lessees’ ability to satisfy their lease payment obligations to us.

We may, from time to time, seek to opportunistically refinance, amend, re-price and/or otherwise replace any of our debt, obtain additional debt financing or enter into other financing arrangements, reduce or extend our debt, lower our interest payments or the cost of capital available to us under certain types of financing arrangements,available, or otherwise seek to improve our financial position or the terms of our debt or other financing agreements. These actions may include open market or negotiated debt repurchases, negotiated repurchases, or other repayments, redemptions or retirements of our debt or other financing arrangements.

The amount of debt that may be borrowed or issued, refinanced, and/or repurchased, repaid, redeemed or otherwise retired, if any, will depend on prevailing market conditions, the trading levels of our debt, our cash position, compliance with our debt covenants and other considerations.factors. The availability and pricing of debt financing remainsare subject to volatility and remain susceptible to global events, including economic downturns, political changes, rising interest rates, currency fluctuations, and the rate of international economic growth. If we need, but cannotare obtain,unable, to obtain adequate capital on satisfactory terms, or at all, as a result of negative conditions in the capital markets or otherwise, our business, financial condition and results of operations could be materially adversely affected.

We bear the risk of re-leasing or selling our aircraft in order to generate cash flows. Only a portion of an aircraft’s value is coveredsupported by contractual cash flows from leases, soand we are therefore exposed to the risk that the residual value will not be sufficient to permit us to fully recover our investmentinvestment, andwhich thatcould werequire may haveus to record impairment charges. In certain cases, we commit to purchase aircraft that are not subject to lease and therefore are subject to lease placement risk.

Other factors that may affect our ability to fully realize our investment in our aircraftaircraft, and that may increase the likelihood of impairment chargescharges, include credit deterioration ofor default by a lessee, higher fuel prices which may reduce demand for older, less fuel-efficient aircraft, additionalchanges in environmental regulations,regulations or emissions requirements, age restrictions, customer preferences and other factors that may effectively shorten the usefuleconomic lifelives or reduce the marketability of oldercertain aircraft.aircraft types.

We own and lease long-lived assets.assets, Ifand adverse market conditions worsen, or in the event of a customer default, wedefaults may berequire requiredus to write down the value of some of our assets.

We perform a recoverability assessmentassessments of allour aircraft and other flight equipment onat aleast quarterlyannually, and annualmore basis.frequently We perform customer or aircraft specific recoverability tests wheneverwhen events or changes in circumstances,circumstances or indicators, suggestindicate that the carrying amount or net book value of an asset may not be recoverable. We perform aircraft-specific recoverability tests whenever such indicators exist. For assets with indicators of impairment, we measureassess whether the estimated future undiscounted net cash flows expected to be generated by the asset exceed its net book value. TheThese undiscounted cash flows consist ofinclude cash flows from currently contracted lease rentals and maintenance payments, future projected lease rates and maintenance payments, transition costs, estimated down time, and estimated residual or scrap values for an aircraft. In the event thatIf an aircraft does not meet the recoverability test, the aircraft will be adjustedwritten down to its estimated fair value, resulting in an impairment charge.

Our estimates and assumptions are based on current and future expectations of the global demand for a particular aircraft type and historical experience in the aircraft leasing market and aviation industry, as well as information received from third-party industry sources. The factors considered in estimating the undiscounted net cash flows are impactedsubject byto changeschange in future periods dueand tomay be affected by changes in projected lease rental and maintenance payments, residual values, economic conditions, technology, airline demand for a particular aircraft type and other factors, such as the location of the aircraft and accessibility to records and technical documentation. If our estimates or assumptions change, we may revise our cash flow assumptions and record future impairment charges.

Our senior management’s reputations and relationships with lessees, sellers, buyers and financiers of aircraft are a critical element of our business. We encounterface intense competition for qualified employeespersonnel from other companies in the aircraft leasing industry, and we believe there are onlyis a limited numberpool of availableexecutives qualifiedwith executivesthe requisite experience in our industry. The Company seeks to retainmaintain a pipeline of senior management personnel with superior talent to providesupport continuity ofand succession,succession planning, including for the Chief Executive Officer position and other seniorkey leadership positions. Our Board of Directors is actively involved in succession planning, including regular review of short- and long-term succession plans for senior positions. Our future success depends, to a significant extent, upon the continued service of our senior management personnel, including the Chief Executive Officer, and if we lose one or more of these individuals, our business could be adversely affected.

As of February 28, 2025,2026, our total indebtedness was $5.0$5.3 billion, representing 66% of our total capitalization. Aircastle Limited is either the principal or co-obligor on, or has guaranteedguaranteed, most of this indebtedness, and we are responsible for the timely payment whenof amounts due and compliance with covenants under the related debt documentation. We may be unable to generate sufficient cash to pay, when due, the principal of, interest on or other amounts due with respect to our indebtedness,indebtedness. and ourOur substantial amount of indebtedness may increase our vulnerability to adverse economic and industry conditions, reduce our flexibility in planning for or reaction to changes in the business environment or in our business or industry, and adversely affect our cash flow and our ability to operate our business and compete effectively with our competitors. Our indebtedness subjects us to certain risks, including:

•our failure to comply with the terms of our indebtedness, including restrictive covenants, may result in additional interest being duedue, events of default or defaultsthe thatacceleration couldof principal and unpaid interest on such indebtedness, and may result in the acceleration of the principal, and unpaid interest on, the defaulted debt, as well as the forfeiture of any aircraft pledged as collateral; and

•non-compliance with covenants prohibiting certain investments and other restricted payments, raiseraising additional capital or refinancerefinancing our existing debt, may reduce our operational flexibility and limit our ability to refinance.

Maintaining our credit ratings depends on our financial resultsperformance and on other factors, including the outlook of the ratings agencies on our sector and on the market generally. A downgrade of our credit rating downgrade or being putplacement on negative watch may make it more difficult or costly for us to raise debt financing in the unsecured bond market, or may result in higher pricing or less favorable terms under other financings. CreditAny ratingsuch downgradesdowngrade or being put on negative watch,watch may make it more difficult and/or more costly for us to satisfy our funding requirements. Any future tightening of capital or regulation of financial institutions could impact our ability to raise funds in the commercial bank loan market in the future.

Aircastle acquires, leases, and sells commercial jet aircraft to airlines throughout the world.worldwide. We are a leading secondary market investorinvestor, that sourcessourcing aircraft through variousa variety of acquisition channelschannels, that primarily includeincluding other aircraft lessors, airlines through purchase-leaseback transactions, financial institutions and other aircraft owners, and aircraft manufacturers. We have significant experience in successfully managing aircraft throughout their life cycle, including lease and technical management, aircraft redeliveries, transitions, and asset sales or disposals. We sell aircraft and engine assets, either with a lease attached or on a part-out basis, with the aimobjective of generating profits and reinvesting sale proceeds. Our aircraft are managed by an experienced team based in the United States, Ireland and Singapore.

As of February 28, 2025,2026, we owned and managed on behalf of our joint venture 273282 aircraft leased to 7776 lessees located in 4745 countries. The Net Book Value of our fleet was $8.5 billion as of February 28, 2026, an increase of 8% from $7.9 billion as of February 28, 2025, up 9% from $7.2 billion as of February 29, 2024.2025. The weighted average age of our fleet was 9.19.0 years and the weighted average remaining lease term was 5.4 years. The weighted average utilization rate of our fleet was 99% for the year ended February 28, 2025.2026.

Our total revenues, net income and Adjusted EBITDA were $821.0$975.1 million, $123.6$194.0 million, and $789.9$945.1 millionmillion, respectively, for the year ended February 28, 2025,2026, respectively,compared andto $855.4$821.0 million, $83.3$123.6 million and $759.5$789.9 millionmillion, respectively, for the year ended February 29,28, 2024,2025. respectively. The Company’sOur financial performance reflectscontinued theto reflect strong global passenger demand for air travel and the robustsustained demand for our aircraftnarrow-body dueaircraft, todriven by ongoing OEM delivery delays and broader supply chain constraints. TheThese increasedmarket demandconditions forsupported our aircraft throughelevated lease extension requestsactivity and strong gains on salessales, which contributed positively to our operating results. Our financial results,performance which arewas also partlyfavorably drivenimpacted by additional cash settlement proceeds received in respect of our contingent and possessed insurance policies (“C&P Policies”) for aircraft formerly on lease to Russian airlines.

During the year ended February 28, 2025,2026, we acquired 5046 aircraft for $1.6$1.7 billion. As of February 28, 2025,2026, we had commitments to acquire 2017 aircraft for $771.7$829.5 million, with delivery through MarchNovember 2027,2028, which include estimated amounts for pre-delivery deposits, contractual price escalations and other adjustments. As of April 16,14, 2025,2026, we have acquired 91 additional aircraft and have commitments to acquire 2620 aircraft for $1.4$908.9 billion.million.

During the year ended February 28, 2025,2026, we sold 2733 aircraft and other flight equipment for net proceeds of $565.9$729.5 million.million Weand recognized gains on the sale or disposition of aircraft totaling $77.2$95.9 million. As of April 16,14, 2025,2026, we have sold 122 additional aircraft.

The Company leased 9 aircraft to Russian airlines that were unrecoverable following Russia’s invasion of Ukraine in February 2022. The Company filed claims against the reinsurers of the Russian airlines’ insuranceinsurance, andas well as under the Company’s contingent and possessed insurance policies (“C&P Policies”)Policies, seeking indemnity.indemnification.

The receipt of the settlement proceeds serveserves to mitigate, in part, the Company’s losses under its aviation insurance policies. WeThe remainCompany incontinues settlementto discussionspursue withrecoveries some offrom the remaining insurers; under our C&P Policies. However,however, the collection, timing and amount of any futureadditional recoveries, including those related to insurance litigation, remain uncertain. Accordingly, at this time, the Company can give no assurance as to when or what amounts it may ultimately collect with respect to these matters.

We operate in a capital-intensive industry and have a demonstrated track record of consistently raising substantial amounts of capital from both debt and equity investors. Since our inception in late 2004,inception, we raised $2.6 billion in equity capital from private and public investors, including $500.0 million received in aggregate during the years ended February 28, 20252026 and February2025, 29, 2024, in respect of the Subscription Agreement entered into withfrom our Shareholders – see Note 9 in the Notes to Consolidated Financial Statements.Shareholders. We have also obtained $23.1$25.0 billion in debt capital from a variety of sources, including the unsecured bond market, commercial banks, export credit agency-backed debt, the aircraft securitization markets and JOLCO financings. The diversity and global nature of ourthese financing sources demonstrates our ability to adapt to changing market conditions and seize new growth opportunities.

We intend to fund new investments through cash on hand, funds generated from operations, maintenance payments received from lessees, equity offerings, unsecured bond offerings, borrowings secured by our aircraft, draws under on our revolving credit facilities and proceeds from any future aircraft sales. We may repay all or a portion of such borrowings from time to time with the net proceeds from subsequent long-term debt financings, additional equity offerings or cash generated from operations and asset sales. Therefore,Accordingly, our ability to execute our business strategy, particularly the acquisition of additional commercial jet aircraft or other aviation assets, depends to a significant degree on our ability to obtain additional debt and equity capital on terms we deem attractive.

The following table sets forth certain information with respect to our owned aircraft and aircraft managed by us on behalf of our joint venture as of February 28, 20252026 and February 29, 20242025:

(34)Lease rental revenue, together with interest income and cash collections on our net investment in leases for the periodperiod, expressed as a percentpercentage of the average Net Book Value for the period; quarterly information is annualized.

The top ten customers for our owned aircraft atas of February 28, 20252026 were as follows:

Total revenues decreasedincreased $34.4$154.1 million, attributable to:

•This was partially offset by a $53.5$65.3 million decrease related to the sale of 4758 aircraft since March 1, 2023; and2024.

The amortization of lease incentivespremiums increaseddecreased $6.1by million$4.3 duemillion, primarily attributable to the transitionfull amortization of premiums on aircraft towhose newleases lessees.were extended.

Maintenance revenue. For the yearyears ended February 28, 2025,2026 and February 29, 2024,2025, we recorded $90.5$95.7 million and $132.2$90.5 millionmillion, respectively, of maintenance revenue, respectively, primarily related to maintenance payments received by us and recognized into income asin aconnection result ofwith scheduled aircraft lease expirations and engine redeliveries. The decrease in maintenance revenue of $41.7 million is primarily attributable to fewer aircraft returns during the year ended February 28, 2025.

Total operating expenses decreasedincreased $21.6$91.0 million attributable to:

Depreciation expense increased $7.4$28.4 million, primarily attributable to an increase of $42.1$68.7 million related to 8095 aircraft purchased since March 1, 2023.2024. This increase was partially offset by a decrease of $35.0$30.7 million related to 4957 aircraft sold since March 1, 2023.2024.

Interest, net increased $18.9$34.2 million due primarily to a higher weighted average costdebt outstanding of borrowing.$619.3 million.

Selling, general and administrative expenses increased $4.3$3.1 million primarily due to an increase inhigher personnel costs and ongoing Russian litigation expenses.costs.

Impairment of aircraft. During the year ended February 28, 2025,2026, the Company recorded total impairment charges totalingof $19.4$53.3 million,million. includingThis $11.0amount includes $35.9 million of transactional impairments related to a scheduled lease expiration and an aircraft leaseleased amendment.to The2 customers that filed for bankruptcy protection. For these aircraft, the Company recognized $24.0$11.5 million of maintenance and lease rentals received in advance into revenue for these aircraft during the yearsame ended February 28, 2025.period.

During the year ended February 29,28, 2024,2025, the Company recorded impairment charges totaling $55.2$19.4 million, ofincluding which $39.5$11.0 million wereof transactional impairments related to a scheduled aircraft lease expirationsexpiration and enginea redeliveries.lease amendment for 1 aircraft. The Company recognized $48.0$24.0 million of maintenance revenue for these aircraft andduring engines.the year ended February 28, 2025.

Other Income (Expense):

Total other income increased by $51.0$14.6 million. During the yearyears ended February 28, 2026 and 2025, the Company receivedentered cash proceeds of $49.5 million ininto settlement ofagreements the Company’s claims againstwith certain of the insurers under its C&P Policies infor respectaggregate settlement amounts of $70.8 million and $49.5 million, respectively, related to aircraft formerly on lease to Russian airlines.

Income tax provision. We recognized income tax provisionprovisions of $21.9$28.9 million and $23.3$21.9 million and our effective tax rate was 15.4% and 22.3% for the years ended February 28, 20252026 and 2025, respectively. Our effective tax rate for the years ended February 29,28, 2024,2026 and 2025 was 13.1% and 15.4%, respectively. The decrease in our effective tax rate iswas primarily attributable to the mix of profits between the various jurisdictions in taxablewhich we operate, primarily driven by lower U.S. earnings and nontaxablethe jurisdictions. The year ended February 28, 2025 included $49.5 millionutilization of settlementBermuda proceeds,net aoperating portion of which was recorded in a nontaxable jurisdiction.losses.

We lease flight equipment under net operating leases with lease terms typically ranging from three3 to seven7 years. We generally do not offer renewal terms or purchase options in our leases, although certain of our operating leases allow the lessee the option to extend the lease for an additional term. Operating leases with fixed rentals and step rentals are recognized on a straight-line basis over the term of the initial lease, assuming no renewals.

Our aircraft lease agreements generally provide for the periodic payment of a fixed amount of rent over the lifeterm of the lease, andwith the amount of the contracted rent will dependdependent upon the type, age, specification and condition of the aircraftaircraft, andas well as market conditions at the time the lease is committed. The amount of rent we receive willis dependalso onaffected by a number of factors, including the creditworthiness of our lessees and the occurrence of delinquencies, restructurings and defaults. OurIn addition, our lease rental revenues are also affected by the extent to which aircraft are off-lease and our ability to remarket aircraft that are nearing the end of their leases in order to minimize their off-lease time. Our success in re-leasing aircraft is affected by market conditions relating to our aircraft and by general industry conditions and trends. An increase in the percentage of off-lease aircraft or a reduction in lease rates upon remarketing would negatively impact our revenues.

Our aircraft are generally leased under net leases, wherebypursuant to which the lessee mustis payresponsible for paying operating expenses accruedincurred or payableaccrued during the term of the lease, which would normallytypically include maintenance, overhaul, fuel, crew, landing, airport and navigation charges;charges, certain taxes, licenses, consents and approvals;approvals, aircraft registration; and insurance premiums. Many of our leases also contain provisions requiring us to pay a portion of the cost of aircraft modifications to the aircraft performed by the lessee at its expense ifwhere such modifications are mandated by recognized airworthiness authorities.

Typically,In general, the lessee is responsible for performing maintenance on the relevant aircraft and is required to make payments to us for heavy maintenance, overhaul or replacement of certain high-value components of the aircraft.components. These maintenance payments are typically calculated based on hours or cycles of utilization or on calendar time, depending upon the applicable component, and would beare made either monthly in arrears or at the end of the lease term. Our determination of whether to require such payments to be made monthly or to permit a lessee to make a single maintenance payment at the end of the lease term depends on a variety of factors, including the creditworthiness of the lessee, the level of security deposit which may be provided by the lessee and market conditions at the time we enter into the lease. IfWhere a lessee is makingmakes monthly maintenance payments, we wouldare typically begenerally obligated to use such funds to reimburse the lessee for costs they incur for eligible heavy maintenance, overhaul or replacement of certain high-value components,components usuallyduring the lease term, typically following the completion of the relevant work. IfWhere a lessee makes a single end of lease maintenance payment, the lessee would typically be required to paycompensate us for its utilization of the aircraft during the lease. In some cases, however, we may owe a net payment to the lessee in the eventif heavy maintenance is performed and paid for by the lessee during the lease term and the aircraft is returned to us in better condition than at lease inception.

We record monthly maintenance payments by the lessee during a lease as accrued maintenance payment liabilities in recognition of our obligation in the lease to refund such payments,receipts, and therefore we typically do not recognize such maintenance payments as maintenance revenue during the lease. Reimbursements to the lessee upon the receipt of evidence of qualifying maintenance work are charged against the existing accrued maintenance payments liability. We currently defer maintenance revenue recognition of most monthly maintenance payments until we are able to determine the amount, if any, by which the monthly maintenance payments received from a lessee exceed costs to be incurred by that lessee in performing heavy maintenance, which generally occurs at or near the end of athe lease. End of lease term maintenance payments made to us are recognized as maintenance revenue and end of lease term maintenance payments we make to a lessee are recorded as contra maintenance revenue.

The amount of maintenance revenue or contra maintenance revenue we recognize in any reporting period is inherently volatile and is dependent uponon a number of factors, including the timing of lease expiries, including scheduled expiries and early lease terminations, the timing of maintenance events and the utilization of the aircraft by the lessee.

Many of our leases contain provisions that may require us to pay a portion of the lessee’s costs for heavy maintenance, overhaul or replacement of certain high-value components. We account for these expected payments as lease incentives, which are amortized on a straight-line basis as a reduction of revenue over the lifelease of the lease.term. We estimate the amount of our portion for such costs, typically for the first major maintenance event for the airframe, engines, landing gear and auxiliary power units, expected to be paid to the lesseelessee. These estimates are based on assumed utilization of the related aircraft by the lessee, the anticipated cost of the maintenance event and the estimated amounts the lessee is responsible to pay. The assumptions supporting these estimates are reevaluated annually.

This estimated lease incentive is not recognized as a lease incentive liability at the inception of the lease. We recognize the lease incentive as a reduction of lease revenue on a straight-line basis over the lifelease of the lease,term, with the offset being recorded as a lease incentive liability, which is included in maintenance payments on the balance sheet. The payment to the lessee for the lease incentive liability is first recorded against the lease incentive liability, and any excess above the lease incentive liability is recorded as a prepaid lease incentive asset, which is included in other assets on the balance sheet and continues to amortize over the remaining lifelease of the lease.term.

Flight equipment held for lease is stated at cost and depreciated using the straight-line method, typically over a 25-year life from the date of manufacture for passenger aircraft and over a 30 to 35-year life for freighter aircraft, depending on whether the aircraft is a converted or purpose-built freighter, to estimated residual values. Estimated residual values are generally determined to be approximately 15% of the manufacturer’s estimated realized price for passenger aircraft when new and 5% to 10% for freighter aircraft when new. Management may make exceptions to this policy on a case-by-case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of value. Examples of situationscircumstances wherein which such exceptions may arise include but are not limited to:

All statements included or incorporated by reference in this Quarterly Report on Form 10-Q (this “report”), other than characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. Examples of forward-looking statements include, but are not necessarily limited to, statements relating to our ability to acquire, sell, lease or finance aircraft, raise capital, pay dividends and increase revenues, earnings, EBITDA and Adjusted EBITDA and the global aviation industry and aircraft leasing sector. Words such as “anticipates,” “expects,” “enable,enables,” “intends,” “plans,” “positions,” “projects,” “believes,” “may,” “will,” “would,” “could,” “should,” “seeks,” “estimates” and variations on these words and similar expressions are intended to identify such forward-looking statements. These statements are based on our historical performance and that of our subsidiaries and on our current plans, estimates and expectations and are subject to a number of factors that could lead to actual results being materially different from those described in the forward-looking statements; Aircastle can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any such forward-looking statements which are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated as of the date of this report. These risks or uncertainties include, but are not limited to, those described from time to time in Aircastle’s filings with the Securities and Exchange Commission (the “SEC”) and previously disclosed under “Risk Factors” in Part I - Item 1A of Aircastle’s Annual Report on Form 10-K for the year ended February 28, 2025.2026. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Aircastle to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this report. Aircastle expressly disclaims any obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

Aircastle acquires, leases, and sells commercial jet aircraft to airlines throughout the world.worldwide. We are a leading secondary market investorinvestor, that sourcessourcing aircraft through variousa variety of acquisition channelschannels, that primarily includeincluding other aircraft lessors, airlines through purchase-leaseback transactions, financial institutions and other aircraft owners, and aircraft manufacturers. We have significant experience in successfully managing aircraft throughout their life cycle, including lease and technical management, aircraft redeliveries, transitions, and asset sales or disposals. We sell aircraft and engine assets, either with a lease attached or on a part-out basis, with the aimobjective of generating profits and reinvesting sale proceeds. Our aircraft are managed by an experienced team based in the United States, Ireland and Singapore.

As of NovemberMay 30,31, 2025,2026, we owned and managed on behalf of our joint venture 279 aircraft leased to 7372 airline customers located in 4443 countries. The Net Book Value of our fleet was $8.6$8.4 billion as of NovemberMay 30,31, 2025.2026. The weighted average age of our fleet was 8.69.2 years, and the weighted average remaining lease term was 5.55.3 years. The weighted average utilization rate of our fleet was over 99%98% for the ninethree months ended NovemberMay 30,31, 2025.2026. During the ninethree months ended NovemberMay 30,31, 2025,2026, we purchased 324 aircraft and sold 205 aircraft and other flight equipment. As of NovemberMay 30,31, 2025,2026, we had commitments to purchase 2419 aircraft for $1.0$897.8 billion,million, with deliveries through November 2028, which included estimated amounts for pre-delivery deposits, contractual price escalations and other adjustments.

Our total revenues, net income and Adjusted EBITDA were $723.8$235.5 million, $137.2$33.6 million and $715.2$208.2 million, respectively, for the ninethree months ended NovemberMay 30,31, 2025.2026. Cash flow provided by operating activities was $367.2$97.7 million for the ninethree months ended NovemberMay 30,31, 2025.2026. The Company’s financial performance reflects continued strong global passenger demand for air travel, as well as robustsolid demand for our aircraftaircraft, resultingsupported fromby ongoing delivery delays and supplyconstrained chainproduction disruptionsvolumes experienced byat Original Equipment Manufacturers. Notwithstanding geopolitical uncertainties, including the conflict in the Middle East, demand for our assets has remained strong during the period. Sustained levels of lease extension requests, together with strong gains from aircraft and engine sales, contributed positively to our financial results.

Growth in commercial air traffic has historically been correlated with worldglobal economic activity and has historically grown at a rate of approximately one to two times that of global gross domestic product growth. This expansiongrowth ofin air travel has driven growthexpansion inof the worldglobal aircraft fleet.fleet, Therewhich arecurrently consists of approximately 27,00028,000 commercial mainline passenger and freighter aircraft in the world fleet.aircraft. Aircraft leasing companies own approximately 50%49% of the world’s commercial passenger jet aircraft. Under normal circumstances,market conditions, we would expect the global fleet to continue expanding at aan average annual rate of approximately 2 to 3% average annual rate.3%.

Although recentgeopolitical tariffdevelopments, announcementsincluding andthe tradeconflict policiesin the Middle East, have introduced some volatilityvolatility, toincluding through the globalimpact aviationof sectorfuel earlierprices thison year,our airline customers, we believe that the current operating environmentdemand for airlinesair travel has historically been, and continues to bebe, favorableresilient forduring usperiods andof the wider commercial aircraft leasing industry.disruption. We believe our portfolio, which is primarily comprised of new technology and mid-life,mid-life narrow-body aircraft, will remain attractive forto our airline customers, enabling them to respond to thecontinued growinggrowth demand ofin global air travel.travel demand. As a leading secondary market investor, we believe that our long-standing business strategy of maintaining conservative leverage and limiting long-term financial commitments positions us well to takepursue advantage of newattractive investment opportunities as they arise.

We believe we have sufficient liquidity to meet our contractual obligations over the next twelve months. As of JanuaryJuly 1, 2026, total liquidity of $2.6 billion included $1.8$2.0 billion of undrawn credit facilities, $0.7$0.5 billion of projected adjusted operating cash flows and contracted asset sales and $0.1 billion of unrestricted cash through JanuaryJuly 1, 2027.

During the ninethree months ended NovemberMay 30,31, 2025,2026, we purchased 324 aircraft for $1.3$116.9 billion.million. As of NovemberMay 30,31, 2025,2026, we had commitments to purchase 2419 aircraft for $1.0$897.8 billion,million, with delivery through November 2028, which included estimated amounts for pre-delivery deposits, contractual price escalations and other adjustments. As of JanuaryJuly 1,2, 2026, we have purchased 81 additional aircraft and have commitments to purchase 2218 aircraft for $1.0$859.8 billion.million.

During the ninethree months ended NovemberMay 30,31, 2025,2026, we sold 205 aircraft and other flight equipment for net proceeds of $368.8$113.9 million and recognized gains on the sale or disposition of flight equipment totaling $59.6$10.9 million. As of JanuaryJuly 1,2, 2026, we have sold 34 additional aircraft.

As of JanuaryJuly 1,2, 2026, we had 5 off-lease aircraft and 210 aircraft with a lease expiring in fiscal year 2025,2026, which combined account for less than 3%4% of our Net Book Value at NovemberMay 30,31, 2025,2026, remainingstill to be placed or sold. We expect to sell or part out 210 of these aircraft.

Taking into account lease and sale commitments, we currently have the following number of aircraft with lease expirations scheduled in thebetween fiscal years 20262027 toand 2029,2030, representing the percentage of our Net Book Value as of NovemberMay 30,31, 2025,2026, specified below:

•2028: 3231 aircraft, representing 9%8%; and

•2029: 3938 aircraft, representing 13%.12%; and

We operate in a capital-intensive industry and have a demonstrated track record of consistently raising substantial amounts of capital from both debt and equity investors. Since our inception in late 2004,inception, we have raised $2.6 billion in equity capital from private and public investors. We have also haveobtained raised $24.8$26.0 billion in debt capital from a variety of sources, including the unsecured bond market, commercial banks, export credit agency-backed debt, the aircraft securitization market and Japanese Operating Lease with Call Option financings, which have been originated by Marubeni. The diversity and global nature of our financing sources demonstrate our ability to adapt to changing market conditions and seize new growth opportunities.

We intend to fund new investments through cash on hand, funds generated from operations, maintenance payments received from lessees, equity offerings, unsecured bond offerings, borrowings secured by our aircraft, draws under our revolving credit facilities and proceeds from any future aircraft sales. We may repay all or a portion of such borrowings from time to time with the net proceeds from subsequent long-term debt financings, additional equity offerings or cash generated from operations and asset sales. Therefore,Accordingly, our ability to execute our business strategy, particularly the acquisition of additional commercial jet aircraft or other aviation assets, depends to a significant degree on our ability to obtain additional debt and equity capital on terms we deem attractive.

The following table sets forth certain information with respect to our owned aircraft and aircraft managed by us on behalf of our joint venture as of NovemberMay 30,31, 20252026 and 20242025:

(2)Aircraft on-leaseon dayslease as a percentage of total days in period weighted by Netnet Bookbook Value.value.

(34)Lease rental revenue, together with interest income and cash collections on our net investment in leases for the periodperiod, expressed as a percentage of the average Net Book Value for the period; quarterly information is annualized.

(2) We currently have 56 off-lease narrow-body aircraft which wethat are marketingbeing marketed for lease. Of these aircraft, 45 were previously leased to a customer that has filedsince forceased bankruptcy protection,operations, and we expect these aircraftthey will remain off-lease for an extended period. The remaining aircraft has an executed lease and is expected to be delivered to a customer in the second quarter of fiscal year 2026.

The top ten customers for our owned aircraft at NovemberMay 30,31, 2025,2026, were as follows:

Results of Operations for the three months ended NovemberMay 30,31, 2025,2026, as compared to the three months ended NovemberMay 30,31, 20242025:

Revenues:

Total revenues increaseddecreased $42.8$24.3 million, attributable to:

Lease rental revenue increased $34.1$11.5 million, primarily attributable to an increase of $49.7$31.1 million related to 6949 aircraft purchased since SeptemberMarch 1, 2024.2025.

This was partially offset by •a $14.5 million decrease related to the sale of 4335 aircraft and other flight equipment since SeptemberMarch 1, 2024.2025; and

The amortization of lease incentives decreasedincreased $6.0$4.6 million, primarily due to the reversal of lease incentive liabilities recognized in the three months ended May 31, 2025 related to 2 engine redeliveries.

Maintenance revenue. For the ninethree months ended NovemberMay 30,31, 20252026 and 2024,2025, we recorded $81.7$24.2 million and $76.0$38.1 million of maintenance revenue, respectively, primarily related to maintenance payments received by us and recognized into income asin aconnection result ofwith scheduled aircraft lease expirations and engine redeliveries.redeliveries, with the period-over-period decrease driven by the timing of such events.