Aircastle (AYR) 10-Q 11 Jan 24 2023 Q3 Quarterly report Financial data

Cover Page

Cover Page - shares	9 Months Ended
	Nov. 30, 2023	Jan. 05, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Nov. 30, 2023
Document Transition Report	false
Entity File Number	001-32959
Entity Registrant Name	AIRCASTLE LIMITED
Entity Incorporation, State or Country Code	D0
Entity Tax Identification Number	98-0444035
Entity Address, Address Line One	c/o Aircastle Advisor LLC
Entity Address, Address Line Two	201 Tresser Boulevard, Suite 400
Entity Address, City or Town	Stamford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06901
City Area Code	203
Local Phone Number	504-1020
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,564
Entity Central Index Key	0001362988
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--02-29
Common Shares
Document Information [Line Items]
Title of 12(b) Security	Common Shares, par value $0.01 per share
Security Exchange Name	NONE
No Trading Symbol Flag	true
Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Preference Shares, par value $0.01 per share
Security Exchange Name	NONE
No Trading Symbol Flag	true

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
ASSETS
Cash and cash equivalents	$ 105,832	$ 231,861
Accounts receivable	13,012	12,855
Flight equipment held for lease, net	6,588,340	6,567,606
Net investment in leases, net	248,842	67,694
Unconsolidated equity method investment	42,292	40,505
Other assets	300,204	346,330
Total assets	7,298,522	7,266,851
LIABILITIES
Borrowings from secured financings, net	894,913	752,298
Borrowings from unsecured financings, net	3,455,505	3,842,454
Accounts payable, accrued expenses and other liabilities	219,547	206,473
Lease rentals received in advance	56,710	66,816
Security deposits	64,606	61,734
Maintenance payments	492,350	465,618
Total liabilities	5,183,631	5,395,393
Commitments and Contingencies
SHAREHOLDERS’ EQUITY
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at November 30, 2023 and February 28, 2023	0	0
Common shares, $0.01 par value, 250,000,000 shares authorized, 15,564 and 14,048 shares issued and outstanding at November 30, 2023 and February 28, 2023, respectively	0	0
Additional paid-in capital	2,078,774	1,878,774
Retained earnings (accumulated deficit)	36,117	(7,316)
Total shareholders’ equity	2,114,891	1,871,458
Total liabilities and shareholders’ equity	$ 7,298,522	$ 7,266,851

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Nov. 30, 2023	Feb. 28, 2023
Statement of Financial Position [Abstract]
Preference shares, par value	$ 0.01	$ 0.01
Preference shares, shares authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	400	400
Preferred Stock, Shares Outstanding	400	400
Preferred Stock, Liquidation Preference, Value	$ 400,000	$ 400,000
Common shares, par value	$ 0.01	$ 0.01
Common shares, shares authorized	250,000,000	250,000,000
Common shares, shares issued	15,564	14,048
Common shares, shares outstanding	15,564	14,048

Consolidated Statements of Inco

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Revenues:
Lease rental revenue	$ 156,820	$ 142,336	$ 453,906	$ 432,988
Direct financing and sales-type lease revenue	4,835	2,087	10,993	6,950
Amortization of lease premiums, discounts and incentives	(2,641)	(3,763)	(16,972)	(14,669)
Maintenance revenue	58,657	56,574	108,223	103,787
Total lease revenue	217,671	197,234	556,150	529,056
Gain on sale or disposition of flight equipment	20,193	53,473	67,240	67,209
Other revenue	882	6,809	1,803	10,394
Total revenues	238,746	257,516	625,193	606,659
Operating expenses:
Depreciation	86,647	82,872	261,764	246,296
Interest, net	57,037	50,757	170,963	151,638
Selling, general and administrative	18,500	17,999	58,217	55,358
Provision for credit losses	5,280	854	11,405	1,543
Impairment of flight equipment	34,959	29,880	37,156	67,979
Maintenance and other costs	7,107	3,783	24,494	17,010
Total operating expenses	209,530	186,145	563,999	539,824
Other income (expense):
Loss on extinguishment of debt	0	0	0	(463)
Other	1,529	1,201	6,238	3,273
Total other income	1,529	1,201	6,238	2,810
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment	30,745	72,572	67,432	69,645
Income tax provision	6,025	23,071	15,286	22,332
Earnings of unconsolidated equity method investment, net of tax	925	603	1,787	1,780
Net income	25,645	50,104	53,933	49,093
Earnings available to common shareholders – Basic	25,645	50,104	43,433	38,593
Preference share dividends	0	0	(10,500)	(10,500)
Total comprehensive income available to common shareholders	$ 25,645	$ 50,104	$ 43,433	$ 38,593

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) $ in Thousands	3 Months Ended	9 Months Ended
	Nov. 30, 2023 USD ($)	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)
Cash flows from operating activities:
Net income (loss)	$ 25,645	$ 53,933	$ 49,093
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities:
Depreciation	86,647	261,764	246,296
Amortization of deferred financing costs		12,611	10,612
Amortization of lease premiums, discounts and incentives	2,641	16,972	14,669
Deferred income taxes		11,082	13,227
Collections on net investment in leases		1,565	5,444
Security deposits and maintenance payments included in earnings		(37,654)	(35,437)
Gain on sale or disposition of flight equipment	(20,193)	(67,240)	(67,209)
Loss on extinguishment of debt	0	0	463
Impairment of flight equipment	34,959	37,156	67,979
Provision for credit losses	5,280	11,405	1,543
Other		(1,769)	(1,778)
Changes in certain assets and liabilities:
Accounts receivable		504	11,368
Other assets		(16,164)	2,223
Accounts payable, accrued expenses and other liabilities		8,351	8,947
Lease rentals received in advance		16,551	16,091
Net cash and cash equivalents provided by operating activities		309,067	343,531
Cash flows from investing activities:
Acquisition and improvement of flight equipment		(669,597)	(688,722)
Proceeds from sale of flight equipment		198,816	334,164
Aircraft purchase deposits and progress payments, net of deposits returned and aircraft sales deposits		3,126	7,765
Payments for (Proceeds from) Other Investing Activities		(5,548)	1,500
Net cash and cash equivalents used in investing activities		(473,203)	(345,293)
Cash flows from financing activities:
Proceeds from issuance of common shares		200,000	0
Proceeds from secured and unsecured debt financings		1,383,709	139,800
Repayments of secured and unsecured debt financings		(1,632,983)	(163,543)
Debt extinguishment costs		0	(291)
Deferred financing costs		(7,673)	(8,674)
Security deposits and maintenance payments received		130,068	110,675
Security deposits and maintenance payments returned		(14,014)	(17,679)
Dividends paid		(21,000)	(21,000)
Net cash and cash equivalents provided by financing activities		38,107	39,288
Net (decrease) increase in cash and cash equivalents:		(126,029)	37,526
Cash and cash equivalents at beginning of period		231,861	170,682
Cash and cash equivalents at end of period	105,832	105,832	208,208
Cash and cash equivalents	105,832	105,832
Unrestricted and restricted cash and cash equivalents	$ 105,832	105,832	208,208
Supplemental disclosures of cash flow information:
Cash paid for interest, net of amounts capitalized		158,730	138,999
Cash paid for income taxes		4,142	4,602
Supplemental disclosures of non-cash investing activities:
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions		13,414	4,005
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets settled in sale of flight equipment		54,335	18,672
Transfers from flight equipment held for lease to Net investment in leases and Other assets		$ 184,236	$ 1,695

Consolidated Statements of Shar

Consolidated Statements of Shareholder's Equity Statement - USD ($) $ in Thousands	Total	Common Shares	Preferred Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Feb. 28, 2022		14,048
Balance at Feb. 28, 2022	$ 1,829,699	$ 0	$ 0	$ 1,878,774	$ (49,075)
Preferred stock, balance, shares at Feb. 28, 2022			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	7,682				7,682
Balance, shares at May. 31, 2022		14,048
Balance at May. 31, 2022	1,837,381	$ 0	$ 0	1,878,774	(41,393)
Preferred stock, balance, shares at May. 31, 2022			400
Balance, shares at Feb. 28, 2022		14,048
Balance at Feb. 28, 2022	1,829,699	$ 0	$ 0	1,878,774	(49,075)
Preferred stock, balance, shares at Feb. 28, 2022			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	49,093
Balance, shares at Nov. 30, 2022		14,048
Balance at Nov. 30, 2022	1,868,292	$ 0	$ 0	1,878,774	(10,482)
Preferred stock, balance, shares at Nov. 30, 2022			400
Balance, shares at May. 31, 2022		14,048
Balance at May. 31, 2022	1,837,381	$ 0	$ 0	1,878,774	(41,393)
Preferred stock, balance, shares at May. 31, 2022			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(8,693)				(8,693)
Preference share dividends	(10,500)				(10,500)
Balance, shares at Aug. 31, 2022		14,048
Balance at Aug. 31, 2022	1,818,188	$ 0	$ 0	1,878,774	(60,586)
Preferred stock, balance, shares at Aug. 31, 2022			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	50,104				50,104
Balance, shares at Nov. 30, 2022		14,048
Balance at Nov. 30, 2022	$ 1,868,292	$ 0	$ 0	1,878,774	(10,482)
Preferred stock, balance, shares at Nov. 30, 2022			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares (in shares)	14,048
Balance, shares at Feb. 28, 2023	14,048	14,048
Balance at Feb. 28, 2023	$ 1,871,458	$ 0	$ 0	1,878,774	(7,316)
Preferred stock, balance, shares at Feb. 28, 2023	400		400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 22,770				22,770
Preference share dividends	(10,500)
Balance, shares at May. 31, 2023		14,048
Balance at May. 31, 2023	$ 1,894,228	$ 0	$ 0	1,878,774	15,454
Preferred stock, balance, shares at May. 31, 2023			400
Balance, shares at Feb. 28, 2023	14,048	14,048
Balance at Feb. 28, 2023	$ 1,871,458	$ 0	$ 0	1,878,774	(7,316)
Preferred stock, balance, shares at Feb. 28, 2023	400		400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	$ 53,933
Balance, shares at Nov. 30, 2023	15,564	15,564
Balance at Nov. 30, 2023	$ 2,114,891	$ 0	$ 0	2,078,774	36,117
Preferred stock, balance, shares at Nov. 30, 2023	400		400
Balance, shares at May. 31, 2023		14,048
Balance at May. 31, 2023	$ 1,894,228	$ 0	$ 0	1,878,774	15,454
Preferred stock, balance, shares at May. 31, 2023			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares	200,000			200,000
Net income (loss)	5,518				5,518
Preference share dividends	(10,500)				(10,500)
Balance, shares at Aug. 31, 2023		15,564
Balance at Aug. 31, 2023	2,089,246	$ 0	$ 0	2,078,774	10,472
Preferred stock, balance, shares at Aug. 31, 2023			400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	25,645				25,645
Preference share dividends	$ (10,500)
Balance, shares at Nov. 30, 2023	15,564	15,564
Balance at Nov. 30, 2023	$ 2,114,891	$ 0	$ 0	$ 2,078,774	$ 36,117
Preferred stock, balance, shares at Nov. 30, 2023	400		400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common shares (in shares)	15,564

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]	Summary of Significant Accounting Policies Organization Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda company that was incorporated on October 29, 2004, under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business consists of acquiring, leasing, managing and selling commercial jet aircraft. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing” and, together with Marubeni, our “Shareholders”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly owned, either directly or indirectly, by Aircastle. Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023. The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of November 30, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued. Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk, including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of early lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing all LIBOR settings, including the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings. Effective March 1, 2023, we adopted ASC 848 and commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). As of November 30, 2023, we had no aircraft leases or debt financings for which the associated lease rental revenue or interest expense used LIBOR as the applicable reference rate. The adoption of ASC 848 did not have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASC 740”). ASC 740 enhances the transparency of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The standard requires disclosure of specific categories in the rate reconciliation, using both percentages and reporting currency amounts, as well as disclosure of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and individual jurisdictions. We are currently evaluating the standard, however, it is not expected to have a material impact on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Nov. 30, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Assets Measured at Fair Value on a Recurring Basis The following tables set forth our financial assets as of November 30, 2023, and February 28, 2023, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at November 30, 2023 Using Fair Value Hierarchy Fair Value as of November 30, 2023 Quoted Prices Significant Significant Valuation Assets : Cash and cash equivalents $ 105,832 $ 105,832 $ — $ — Market Investments, at fair value: Investment in debt securities $ 5,029 $ — $ — $ 5,029 Income Investment in equity securities 5,492 2,048 — 3,444 Market/Income Total investments, at fair value $ 10,521 $ 2,048 $ — $ 8,473 Fair Value Measurements at February 28, 2023 Using Fair Value Hierarchy Fair Value as of February 28, 2023 Quoted Prices Significant Significant Valuation Assets : Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investments, at fair value: Investment in debt securities $ 5,029 $ — $ — $ 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total investments, at fair value $ 10,819 $ 2,346 $ — $ 8,473 Our cash and cash equivalents consist largely of money market securities that are highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities (Level 1). Our investments in debt and equity securities consist of notes and shares received as a result of claims settlements from various airline customers that had entered into bankruptcy proceedings or similar-type restructurings. Our investment in equity securities that are traded in an active market have been valued using quoted market prices (Level 1). Our investments in other equity securities and debt securities for which there is no active market or there is limited market data have been valued using the income approach (Level 3). For the three and nine months ended November 30, 2023, we had no transfers into or out of Level 3. Assets Measured at Fair Value on a Non-recurring Basis We measure the fair value of certain assets and liabilities on a non-recurring basis when U.S. GAAP requires the application of fair value, including events or changes in circumstances that indicate the carrying amounts of these assets may not be recoverable. Assets subject to these measurements include our aircraft and investment in unconsolidated joint venture. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft in impairment tests are based on the average of the market approach (Level 2), which includes third party appraisal data, and an income approach (Level 3), which includes the Company’s assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft discounted using the Company’s weighted average cost of capital. We account for our investment in unconsolidated joint venture under the equity method of accounting. Our investment is recorded at cost and is adjusted by undistributed earnings and losses and the distributions of dividends and capital. This investment is reviewed for impairment whenever events or changes in circumstances indicate the fair value is less than its carrying value and the decline is other-than-temporary. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable and secured and unsecured financings. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature. The fair value of our investments, which consist of debt and equity securities, have been valued using either quoted market prices to the extent such securities are traded in an active market (Level 1), or using the income approach for those securities where there is no active market or there is limited market data (Level 3). The fair value of our senior notes is estimated using quoted market prices (Level 1), whereas all our other financings are valued using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements (Level 2). The carrying amounts and fair values of our financial instruments at November 30, 2023, and February 28, 2023 were as follows: November 30, 2023 February 28, 2023 Assets Carrying Amount Fair Value Carrying Amount Fair Value Investments, at fair value (1) $ 10,521 $ 10,521 $ 10,819 $ 10,819 Other investments, net (2) 5,079 5,079 — — Liabilities Carrying Amount Fair Value Carrying Fair Value Credit Facilities $ 130,000 $ 130,000 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 155,000 155,000 151,449 Term Financings 903,212 903,182 761,283 739,804 Senior Notes 3,200,000 3,056,270 3,700,000 3,524,563 _______________ (1) See Assets Measured at Fair Value on a Recurring Basis. (2) As of November 30, 2023, we had a $3.2 million allowance for credit losses on certain investments in debt securities that are carried at amortized cost – see Note 15. Aircraft Valuation Impairment of Flight Equipment During the three and nine months ended November 30, 2023, the Company recorded impairment charges totaling $35.0 million and $37.2 million, respectively. Of the total impairment charges, $25.5 million were transactional impairments related to scheduled aircraft lease expirations and engine redeliveries during the three months ended November 30, 2023. The Company recognized $37.7 million of maintenance revenue for these aircraft and engines. We also recorded impairments of $9.5 million resulting from the completion of our annual fleet review during the three months ended November 30, 2023. Annual Recoverability Assessment We performed our annual recoverability assessment of all our aircraft during the three months ended November 30, 2023. As a result of our annual fleet review, we recorded impairments of $9.5 million related to 3 narrow-body aircraft, as well as 1 spare engine. Additional customer and aircraft specific recoverability assessments are also performed whenever indicators suggest the carrying amount of an asset may not be recoverable. Indicators may include, but are not limited to, a significant lease restructuring or early lease termination, a significant change in an aircraft model’s storage levels, the introduction of newer technology aircraft or engines, an aircraft type is no longer in production, or a significant airworthiness directive is issued. We have focused and will continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings or restructurings, and certain other customers or aircraft variants that are more susceptible to value deterioration. The recoverability assessment is a comparison of the carrying value of an aircraft to its estimated undiscounted future cash flows. We develop the assumptions used in the recoverability analysis 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 cash flows are impacted by changes in future periods due to 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, including those related to our customers that have entered judicial insolvency proceedings or similar-type proceedings or restructurings, we may revise our cash flow assumptions and record future impairment charges. While we believe that the estimates and related assumptions used in our recoverability assessments are appropriate, actual results could differ from those estimates.

Flight Equipment Held for Lease

Flight Equipment Held for Lease, Net	9 Months Ended
	Nov. 30, 2023
Property, Plant and Equipment [Abstract]
Flight Equipment Held for Lease, Net	Note 3. Flight Equipment Held for Lease, Net The following table summarizes the activities for the Company’s flight equipment held for lease for the nine months ended November 30, 2023: Amount Balance at February 28, 2023 $ 6,567,606 Additions 668,028 Depreciation (261,073) Disposals and transfers to net investment in leases and held for sale (350,165) Impairments (36,056) Balance at November 30, 2023 $ 6,588,340 Accumulated depreciation as of November 30, 2023 $ 2,302,697

Lease Rental Revenues

Lease Rental Revenues	9 Months Ended
	Nov. 30, 2023
Leases [Abstract]
Lease Rental Revenues	Note 4. Lease Rental Revenues Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at November 30, 2023 were as follows: Year Ending February 28/29, Amount (1) 2024 (Remainder of fiscal year) $ 151,479 2025 555,800 2026 457,573 2027 396,182 2028 321,596 Thereafter 965,887 Total $ 2,848,517 _______________ (1) Reflects impact of lessee lease rental deferrals. At November 30, 2023 and February 28, 2023, the amounts of lease incentive liabilities recorded in maintenance payments on our consolidated balance sheets were $27.5 million and $22.4 million, respectively.

Net Investment in Leases, Net

Net Investment in Leases, Net	9 Months Ended
	Nov. 30, 2023
Leases [Abstract]
Net Investment in Leases, Net	Net Investment in Leases, Net At November 30, 2023 and February 28, 2023, our net investment in leases consisted of 13 and 4 aircraft, respectively. The components of our net investment in leases at November 30, 2023 and February 28, 2023, were as follows: November 30, 2023 February 28, 2023 Lease receivable $ 131,070 $ 31,674 Unguaranteed residual value of flight equipment 124,811 37,287 Net investment leases 255,881 68,961 Allowance for credit losses (7,039) (1,267) Net investment in leases, net $ 248,842 $ 67,694 During the nine months ended November 30, 2023, 10 aircraft were reclassified from operating leases to sales-type leases. Collectability of the lease payments for these 10 aircraft, which was not deemed probable at the effective date of the related lease modifications, became probable during the nine months ended November 30, 2023. Accordingly, we derecognized the carrying amounts of the underlying aircraft and lease payments recorded by us as deposit liabilities and recognized net investments in leases. A selling profit totaling $32.7 million for these 10 aircraft was recognized as a component of gain on sale or disposition of flight equipment for the nine months ended November 30, 2023. We also recognized a provision for credit losses totaling $6.2 million for these 10 aircraft during the nine months ended November 30, 2023 – see Note 15 . At November 30, 2023, future lease payments to be received under our net investment in leases were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 6,972 2025 23,711 2026 22,884 2027 23,111 2028 23,111 Thereafter 73,548 Total lease payments to be received 173,337 Present value of lease payments - lease receivable (131,070) Difference between undiscounted lease payments and lease receivable $ 42,267

Concentration of Risk

Concentration of Risk	3 Months Ended
	Nov. 30, 2022
Risks and Uncertainties [Abstract]
Concentration of Risk	Note 6. Concentration of Risk The classification of regions in the tables below is based on our customers’ principal place of business. The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of November 30, 2023, and February 28, 2023, was as follows: November 30, 2023 February 28, 2023 Region Number Net Book Number Net Book Asia and Pacific 60 27 % 62 28 % Europe 88 30 % 88 30 % Middle East and Africa 6 2 % 8 3 % North America 44 24 % 38 20 % South America 32 15 % 29 14 % Off-lease 6 (1) 2 % 14 5 % Total 236 100 % 239 100 % _______________ (1) Of the 6 off-lease aircraft at November 30, 2023, we currently have 1 narrow-body aircraft that is undergoing freighter conversion which we are marketing for lease. The following table sets forth individual countries representing at least 10% of our Net Book Value as of November 30, 2023, and February 28, 2023: November 30, 2023 February 28, 2023 Country Net Book Net Book Number Net Book Net Book Number United States (1) $ 745,266 11% 5 $ — —% — _______________ (1) As of February 28, 2023, the United States represented less than 10% of our Net Book Value. The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended November 30, Nine Months Ended November 30, Region 2023 2022 2023 2022 Asia and Pacific 28 % 31 % 29 % 33 % Europe 28 % 30 % 30 % 29 % Middle East and Africa 4 % 5 % 4 % 5 % North America 23 % 21 % 23 % 19 % South America 17 % 13 % 14 % 14 % Total 100 % 100 % 100 % 100 % The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 4 27% 4 25% 3 21% 4 27% For the three months ended November 30, 2023, South Korea and the United States each comprised 11% of total revenue. Total revenue attributable to South Korea included $21.3 million of maintenance revenue and total revenue attributable to the United States included $9.3 million from gains on sale or disposition of flight equipment. For the nine months ended November 30, 2023, no single country comprised 10% or more of total revenue.

Unconsolidated Equity Method In

Unconsolidated Equity Method Investment	9 Months Ended
	Nov. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Unconsolidated Equity Method Investment	Unconsolidated Equity Method Investment We have a joint venture with Mizuho Leasing which has 9 aircraft with a net book value of $275.1 million at November 30, 2023. Amount Balance at February 28, 2023 $ 40,505 Earnings of unconsolidated equity method investment, net of tax 1,787 Balance at November 30, 2023 $ 42,292

Borrowings from Secured and Uns

Borrowings from Secured and Unsecured Debt Financings	9 Months Ended
	Nov. 30, 2023
Debt Disclosure [Abstract]
Borrowings from Secured and Unsecured Debt Financings	Borrowings from Secured and Unsecured Debt Financings The outstanding amounts of our secured and unsecured debt financings were as follows: At November 30, 2023 At February 28, 2023 Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: Term Financings (1) $ 903,212 38 2.36% to 7.73% 09/13/24 to 06/27/32 $ 761,283 Less: Debt issuance costs and discounts (8,299) (8,985) Total secured debt financings, net of debt issuance costs and discounts 894,913 752,298 Unsecured Debt Financings: 5.000% Senior Notes due 2023 — 5.00% 04/01/23 500,000 4.400% Senior Notes due 2023 — 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 2.850% Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 6.500% Senior Notes due 2028 650,000 6.50% 07/18/28 — Unsecured Term Loans 155,000 7.06% 02/27/24 155,000 Revolving Credit Facilities 130,000 6.80% to 7.38% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (29,495) (32,546) Total unsecured debt financings, net of debt issuance costs and discounts 3,455,505 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,350,418 $ 4,594,752 (1) The borrowings under these financings at November 30, 2023, have a weighted-average fixed rate of interest of 5.46%. Secured Debt Financings Term Financings During the nine months ended November 30, 2023, we borrowed the remaining $168.7 million available under our full recourse secured financing facility entered into on November 21, 2022 (the “2022 Secured Facility”). The total amount borrowed under the 2022 Secured Facility was $447.7 million in relation to 17 owned aircraft. The 2022 Secured Facility bears interest at a floating rate under the Term SOFR (as defined in the credit agreement governing the 2022 Secured Facility) plus 2.35% per annum and matures on November 21, 2029. Unsecured Debt Financings 5.000% Senior Notes due 2023 We repaid the $500.0 million aggregate principal amount of our 5.000% Senior Notes due 2023 at their final stated maturity date in April 2023. 6.500% Senior Notes due 2028 On July 18, 2023, the Company issued $650.0 million aggregate principal amount of 6.500% Senior Notes due 2028 (the “6.500% Senior Notes due 2028”) at an issue price of 99.815%. The 6.500% Senior Notes due 2028 will mature on July 18, 2028, and bear interest at a rate of 6.50% per annum, payable semi-annually on January 18 and July 18 of each year, commencing on January 18, 2024. Interest accrues on the 6.500% Senior Notes due 2028 from July 18, 2023. 4.400% Senior Notes due 2023 We repaid the $650.0 million aggregate principal amount of our 4.400% Senior Notes due 2023 at their final stated maturity date in September 2023. Revolving Credit Facilities One of our unsecured revolving credit facilities was expanded from $245.0 million to $375.0 million during the nine months ended November 30, 2023. The revolving credit facility matures on May 24, 2025. On January 9, 2024, we entered into an amendment that further expanded the size of the facility to $600.0 million and extended the maturity date to January 9, 2028. The facility bears interest at Term SOFR (as defined in the amendment to the credit agreement) plus 1.950%. As of November 30, 2023, we had $130.0 million outstanding under our revolving credit facilities and had $1.7 billion available for borrowing. As of November 30, 2023, we were in compliance with all applicable covenants in our financings.

Shareholders_ Equity

Shareholders’ Equity	9 Months Ended
	Nov. 30, 2023
Equity [Abstract]
Shareholders’ Equity	Shareholders' Equity Issuance of Common Shares On July 5, 2023, the Company entered into a Subscription Agreement with its Shareholders, pursuant to which the Company has agreed to make a pro rata issuance of the Company’s common shares, $0.01 par value per share (the “Shares”), for an aggregate purchase price of up to $500.0 million. The Shares will be issued in two tranches, with 1,516 Shares issued under the first tranche on July 18, 2023, for an aggregate purchase price of $200.0 million. The issuance of the second tranche, which is subject to both the approval of the Company’s Board of Directors and shareholders, is expected to occur during the Company’s first fiscal quarter of 2024 for an aggregate purchase price of up to $300.0 million. The number of Shares and the subscription price per share are to be determined and agreed to by the parties at the time of issuance. The Shares will rank pari passu in all respects with other common shares of the Company. The Company has used and intends to continue to use the net proceeds from the issuance of Shares for general corporate purposes. Preference Share Dividends On March 15, 2023, the Company paid a semi-annual dividend in the amount of $10.5 million for its preference shares, which was approved by the Company’s Board of Directors on January 10, 2023, and accrued as of February 28, 2023. On September 15, 2023, the Company paid a semi-annual dividend in the amount of $10.5 million for its Preference Shares, which was approved by the Company’s Board of Directors on July 11, 2023, and accrued as of August 31, 2023. On January 9, 2024, the Company’s Board of Directors approved a semi-annual dividend in the amount of $10.5 million for its preference shares, to be paid on March 15, 2024.

Related Party Disclosures

Related Party Disclosures	9 Months Ended
	Nov. 30, 2023
Related Party Transactions [Abstract]
Related Party Transactions	Related Party TransactionsWe incurred fees from our Shareholders as part of intra-company service agreements totaling $2.2 million and $1.3 million during the three months ended November 30, 2023 and 2022, respectively, and $6.3 million and $3.9 million during the nine months ended November 30, 2023 and 2022, respectively, whereby our Shareholders provide certain management and administrative services to the Company. In addition, the Company purchased parts under a parts management services and supply agreement with an affiliate of Marubeni totaling $0.2 million and $0.4 million during the three months ended November 30, 2023 and 2022, respectively, and $1.3 million and $3.7 million during the nine months ended November 30, 2023 and 2022, respectively

Income Taxes

Income Taxes	9 Months Ended
	Nov. 30, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned. The Company received assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2035. Consequently, the provision for income taxes relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily the United States and Ireland. The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investment for the three and nine months ended November 30, 2023 and 2022 were as follows: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 U.S. operations $ 7,518 $ 5,868 $ 18,388 $ 15,994 Non-U.S. operations 23,227 66,704 49,044 53,651 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 30,745 $ 72,572 $ 67,432 $ 69,645 Our aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. The aircraft owning subsidiaries resident in the United States and Ireland are subject to tax in those respective jurisdictions. We have a U.S.-based subsidiary which provides management services to our subsidiaries and is subject to U.S. federal, state and local income taxes. We also have Ireland and Singapore-based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions. We recognized an income tax provision of $15.3 million and $22.3 million for the nine months ended November 30, 2023 and 2022, respectively. Our effective tax rate for the nine months ended November 30, 2023 and 2022 was 22.7% and 32.1%, respectively. The decreases are primarily attributable to the mix of profits in taxable and non-taxable jurisdictions. The nine months ended November 30, 2023, included lower U.S. tax in our Irish aircraft-owning entities resulting from aircraft sales in the prior year. The nine months ended November 30, 2022, included higher income taxes related to certain intra-entity transfers of aircraft assets to Irish aircraft-owning entities. Ireland and Bermuda Tax Law Changes On December 18, 2023, Ireland enacted Finance (No. 2) Bill 2023 (the “Finance Bill”) which includes legislative changes for new tax measures and amendments to the Irish tax code, such as provisions to implement the Pillar Two GloBE rules, new outbound payment rules, and a dividend withholding tax, among other changes. The Finance Bill requires a 20% withholding tax be applied to certain payments, such as interest payments, from Irish companies to recipients in no-tax and zero-tax jurisdictions, effective April 1, 2024. The Finance Bill also requires a 25% withholding tax be applied to dividends and distributions, subject to certain exemptions, as well as introduces new interest deduction rules for a qualifying finance company. The Company is currently evaluating the impact the Finance Bill will have on its operations, in particular, with respect to existing intra-entity loans, as well as on our provision for income taxes and the consolidated financial statements. On December 18, 2023, Bermuda enacted a 15% corporate income tax regime (the “Bermuda CIT”) that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025. As a result of the Bermuda CIT, the Company’s exemption from Bermuda corporate income, withholding and capital gains taxes will cease on February 28, 2025. The Company is currently evaluating the impact the Bermuda CIT will have on its operations, as well as on our provision for income taxes and the consolidated financial statements.

Interest, Net

Interest, Net	9 Months Ended
	Nov. 30, 2023
Interest Income (Expense), Net [Abstract]
Interest, Net	Interest, Net The following table shows the components of interest, net: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 Interest on borrowings and other liabilities $ 56,746 $ 49,436 $ 170,751 $ 145,069 Amortization of deferred financing fees and debt discount 4,290 3,517 12,611 10,612 Interest expense 61,036 52,953 183,362 155,681 Less: Interest income (3,323) (1,394) (10,351) (2,401) Less: Capitalized interest (676) (802) (2,048) (1,642) Interest, net $ 57,037 $ 50,757 $ 170,963 $ 151,638

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Nov. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Rent expense, primarily for the corporate office and sales and marketing facilities, was $0.6 million and $0.5 million, and $1.8 million and $1.4 million for the three and nine months ended November 30, 2023 and 2022, respectively. As of November 30, 2023, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 735 2025 2,957 2026 2,801 2027 2,738 2028 2,769 Thereafter 17,817 Total $ 29,817 At November 30, 2023, we had commitments to acquire 12 aircraft for $402.7 million. At November 30, 2023, commitments, including $34.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 26,500 2025 73,934 2026 204,343 2027 97,876 2028 — Thereafter — Total $ 402,653

Other Assets

Other Assets	9 Months Ended
	Nov. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Other assets consisted of the following as of November 30, 2023, and February 28, 2023: November 30, February 28, Deferred income tax asset $ 250 $ 304 Lease incentives and premiums, net of accumulated amortization of $87,544 and $77,722, respectively 32,814 54,208 Flight equipment held for sale 25,148 59,370 Aircraft purchase deposits and Embraer E-2 progress payments 45,308 43,494 Right-of-use asset (1) 16,390 16,930 Deferred rent receivable, net (2) 17,535 35,631 Investments, at fair value (3) 10,521 10,819 Other investments, net (2)(3) 5,079 — Other assets 147,159 125,574 Total other assets $ 300,204 $ 346,330 ______________ (1) Net of lease incentives and tenant allowances. (2) Net of an allowance for credit losses as of November 30, 2023 – see Note 15. (3)

Allowance for Credit Losses

Allowance for Credit Losses	9 Months Ended
	Nov. 30, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	Allowance for Credit Losses The activity in the allowance for credit losses related to our net investment in leases, investments, and deferred rent receivables for the nine months ended November 30, 2023, was as follows: Net Investment in Leases, net Other Investments, net Deferred Rent Receivables, net Total Balance at February 28, 2023 $ 1,267 $ — $ — $ 1,267 Provision for credit losses 6,050 3,209 2,146 11,405 Write-offs (278) — — (278) Balance at November 30, 2023 $ 7,039 $ 3,209 $ 2,146 $ 12,394 During the nine months ended November 30, 2023, we increased our credit provision for net investment in leases as a result of 10 aircraft that were reclassified from operating leases to sales-type leases – see Note 5. We also recognized a credit provision for debt securities received by us as part of an airline restructuring, as well as certain restructured receivables, during the nine months ended November 30, 2023.

Accounts Payable, Accrued Expen

Accounts Payable, Accrued Expenses and Other Liabilities	9 Months Ended
	Nov. 30, 2023
Payables and Accruals [Abstract]
Accounts Payable, Accrued Expenses and Other Liabilities	Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following as of November 30, 2023, and February 28, 2023: November 30, February 28, Accounts payable, accrued expenses and other liabilities $ 53,603 $ 60,225 Deferred income tax liability 91,018 79,990 Accrued interest payable 52,521 42,752 Lease liability 19,541 19,951 Lease discounts, net of amortization of $43,940 and $45,586, respectively 2,864 3,555 Total accounts payable, accrued expenses and other liabilities $ 219,547 $ 206,473

Subsequent Event

Subsequent Event	9 Months Ended
	Nov. 30, 2023
Subsequent Events [Abstract]
Subsequent Event	Subsequent Events 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’ insurance and the Company’s contingent and possessed insurance policies (“C&P Policies”) seeking indemnity. On December 26, 2023, the Company received cash settlement proceeds of approximately $43.2 million in settlement of the Company’s claims under the insurance policies of Joint Stock Company Aurora Airlines and Joint Stock Company Rossiya Airlines (collectively, the “Airlines”) in respect of 4 aircraft (collectively, the “Aircraft”) formerly on lease to the Airlines. The settlement resolves claims against the Airlines, their respective insurers, and transfers the Aircraft title to a Russian insurer. The Company is in ongoing settlement discussions for the 5 other aircraft that were not included in the insurance settlement. However, it is uncertain whether any of these discussions will result in any settlement and, if so, in what amount. Settlement proceeds, net of any related costs, will be recorded as a component of Gain on sale or disposition of flight equipment for the three months ending February 29, 2024. The receipt of the insurance settlement proceeds serve to mitigate, in part, the Company’s losses under its aviation insurance policies. The Company reserves all rights under its C&P Policies. The collection, timing and amount of any future 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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Nov. 30, 2023
Accounting Policies [Abstract]
Organization and Basis of Presentation	Organization Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda company that was incorporated on October 29, 2004, under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business consists of acquiring, leasing, managing and selling commercial jet aircraft. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing” and, together with Marubeni, our “Shareholders”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly owned, either directly or indirectly, by Aircastle.
Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023. The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of November 30, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued.
Concentration Risk, Credit Risk, Policy	Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk, including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of early lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.
New Accounting Pronouncements, Policy	Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing all LIBOR settings, including the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings. Effective March 1, 2023, we adopted ASC 848 and commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). As of November 30, 2023, we had no aircraft leases or debt financings for which the associated lease rental revenue or interest expense used LIBOR as the applicable reference rate. The adoption of ASC 848 did not have a material impact on our consolidated financial statements. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASC 740”). ASC 740 enhances the transparency of income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The standard requires disclosure of specific categories in the rate reconciliation, using both percentages and reporting currency amounts, as well as disclosure of income taxes paid, net of refunds received, disaggregated by federal, state, and foreign taxes and individual jurisdictions. We are currently evaluating the standard, however, it is not expected to have a material impact on our consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Nov. 30, 2023
Fair Value Disclosures [Abstract]
Fair value assets and liabilities measured on recurring basis	The following tables set forth our financial assets as of November 30, 2023, and February 28, 2023, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at November 30, 2023 Using Fair Value Hierarchy Fair Value as of November 30, 2023 Quoted Prices Significant Significant Valuation Assets : Cash and cash equivalents $ 105,832 $ 105,832 $ — $ — Market Investments, at fair value: Investment in debt securities $ 5,029 $ — $ — $ 5,029 Income Investment in equity securities 5,492 2,048 — 3,444 Market/Income Total investments, at fair value $ 10,521 $ 2,048 $ — $ 8,473 Fair Value Measurements at February 28, 2023 Using Fair Value Hierarchy Fair Value as of February 28, 2023 Quoted Prices Significant Significant Valuation Assets : Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investments, at fair value: Investment in debt securities $ 5,029 $ — $ — $ 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total investments, at fair value $ 10,819 $ 2,346 $ — $ 8,473
Carrying amounts and fair values of financial instruments	The carrying amounts and fair values of our financial instruments at November 30, 2023, and February 28, 2023 were as follows: November 30, 2023 February 28, 2023 Assets Carrying Amount Fair Value Carrying Amount Fair Value Investments, at fair value (1) $ 10,521 $ 10,521 $ 10,819 $ 10,819 Other investments, net (2) 5,079 5,079 — — Liabilities Carrying Amount Fair Value Carrying Fair Value Credit Facilities $ 130,000 $ 130,000 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 155,000 155,000 151,449 Term Financings 903,212 903,182 761,283 739,804 Senior Notes 3,200,000 3,056,270 3,700,000 3,524,563 _______________ (1) See Assets Measured at Fair Value on a Recurring Basis. (2) As of November 30, 2023, we had a $3.2 million allowance for credit losses on certain investments in debt securities that are carried at amortized cost – see Note 15.

Flight Equipment Held for Lea_2

Flight Equipment Held for Lease, Net (Tables)	9 Months Ended
	Nov. 30, 2023
Property, Plant and Equipment [Abstract]
Property, Plant, and Equipment, Lessor Asset under Operating Lease	The following table summarizes the activities for the Company’s flight equipment held for lease for the nine months ended November 30, 2023: Amount Balance at February 28, 2023 $ 6,567,606 Additions 668,028 Depreciation (261,073) Disposals and transfers to net investment in leases and held for sale (350,165) Impairments (36,056) Balance at November 30, 2023 $ 6,588,340 Accumulated depreciation as of November 30, 2023 $ 2,302,697

Lease Rental Revenues (Tables)

Lease Rental Revenues (Tables)	9 Months Ended
	Nov. 30, 2023
Leases [Abstract]
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity	Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at November 30, 2023 were as follows: Year Ending February 28/29, Amount (1) 2024 (Remainder of fiscal year) $ 151,479 2025 555,800 2026 457,573 2027 396,182 2028 321,596 Thereafter 965,887 Total $ 2,848,517 _______________ (1) Reflects impact of lessee lease rental deferrals.

Net Investment in Leases, Net (

Net Investment in Leases, Net (Tables)	9 Months Ended
	Nov. 30, 2023
Leases [Abstract]
Schedule of Components of Net Investment in Leases	The components of our net investment in leases at November 30, 2023 and February 28, 2023, were as follows: November 30, 2023 February 28, 2023 Lease receivable $ 131,070 $ 31,674 Unguaranteed residual value of flight equipment 124,811 37,287 Net investment leases 255,881 68,961 Allowance for credit losses (7,039) (1,267) Net investment in leases, net $ 248,842 $ 67,694
Sales-type and Direct Financing Leases, Lease Receivable, Maturity	At November 30, 2023, future lease payments to be received under our net investment in leases were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 6,972 2025 23,711 2026 22,884 2027 23,111 2028 23,111 Thereafter 73,548 Total lease payments to be received 173,337 Present value of lease payments - lease receivable (131,070) Difference between undiscounted lease payments and lease receivable $ 42,267

Concentration of Risk (Tables)

Concentration of Risk (Tables)	9 Months Ended
	Nov. 30, 2023
Risks and Uncertainties [Abstract]
Long-lived Assets by Geographic Areas	The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of November 30, 2023, and February 28, 2023, was as follows: November 30, 2023 February 28, 2023 Region Number Net Book Number Net Book Asia and Pacific 60 27 % 62 28 % Europe 88 30 % 88 30 % Middle East and Africa 6 2 % 8 3 % North America 44 24 % 38 20 % South America 32 15 % 29 14 % Off-lease 6 (1) 2 % 14 5 % Total 236 100 % 239 100 % _______________ (1) Of the 6 off-lease aircraft at November 30, 2023, we currently have 1 narrow-body aircraft that is undergoing freighter conversion which we are marketing for lease.
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country	The following table sets forth individual countries representing at least 10% of our Net Book Value as of November 30, 2023, and February 28, 2023: November 30, 2023 February 28, 2023 Country Net Book Net Book Number Net Book Net Book Number United States (1) $ 745,266 11% 5 $ — —% — _______________ (1) As of February 28, 2023, the United States represented less than 10% of our Net Book Value.
Revenue from External Customers by Geographic Areas	The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended November 30, Nine Months Ended November 30, Region 2023 2022 2023 2022 Asia and Pacific 28 % 31 % 29 % 33 % Europe 28 % 30 % 30 % 29 % Middle East and Africa 4 % 5 % 4 % 5 % North America 23 % 21 % 23 % 19 % South America 17 % 13 % 14 % 14 % Total 100 % 100 % 100 % 100 %
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas	The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 4 27% 4 25% 3 21% 4 27%

Unconsolidated Equity Method _2

Unconsolidated Equity Method Investment (Tables)	9 Months Ended
	Nov. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investments	Amount Balance at February 28, 2023 $ 40,505 Earnings of unconsolidated equity method investment, net of tax 1,787 Balance at November 30, 2023 $ 42,292

Borrowings from Secured and U_2

Borrowings from Secured and Unsecured Debt Financings (Tables)	9 Months Ended
	Nov. 30, 2023
Debt Disclosure [Abstract]
Outstanding amounts of secured and unsecured term debt financings	The outstanding amounts of our secured and unsecured debt financings were as follows: At November 30, 2023 At February 28, 2023 Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: Term Financings (1) $ 903,212 38 2.36% to 7.73% 09/13/24 to 06/27/32 $ 761,283 Less: Debt issuance costs and discounts (8,299) (8,985) Total secured debt financings, net of debt issuance costs and discounts 894,913 752,298 Unsecured Debt Financings: 5.000% Senior Notes due 2023 — 5.00% 04/01/23 500,000 4.400% Senior Notes due 2023 — 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 2.850% Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 6.500% Senior Notes due 2028 650,000 6.50% 07/18/28 — Unsecured Term Loans 155,000 7.06% 02/27/24 155,000 Revolving Credit Facilities 130,000 6.80% to 7.38% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (29,495) (32,546) Total unsecured debt financings, net of debt issuance costs and discounts 3,455,505 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,350,418 $ 4,594,752 (1) The borrowings under these financings at November 30, 2023, have a weighted-average fixed rate of interest of 5.46%.

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Nov. 30, 2023
Income Tax Disclosure [Abstract]
Sources of income from continuing operations before income taxes	The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investment for the three and nine months ended November 30, 2023 and 2022 were as follows: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 U.S. operations $ 7,518 $ 5,868 $ 18,388 $ 15,994 Non-U.S. operations 23,227 66,704 49,044 53,651 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 30,745 $ 72,572 $ 67,432 $ 69,645

Interest, Net (Tables)

Interest, Net (Tables)	9 Months Ended
	Nov. 30, 2023
Interest Income (Expense), Net [Abstract]
Components of Interest	The following table shows the components of interest, net: Three Months Ended November 30, Nine Months Ended November 30, 2023 2022 2023 2022 Interest on borrowings and other liabilities $ 56,746 $ 49,436 $ 170,751 $ 145,069 Amortization of deferred financing fees and debt discount 4,290 3,517 12,611 10,612 Interest expense 61,036 52,953 183,362 155,681 Less: Interest income (3,323) (1,394) (10,351) (2,401) Less: Capitalized interest (676) (802) (2,048) (1,642) Interest, net $ 57,037 $ 50,757 $ 170,963 $ 151,638

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Nov. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Schedule of obligations under non-cancelable operating leases	As of November 30, 2023, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 735 2025 2,957 2026 2,801 2027 2,738 2028 2,769 Thereafter 17,817 Total $ 29,817
Long-term Purchase Commitment	At November 30, 2023, commitments, including $34.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 26,500 2025 73,934 2026 204,343 2027 97,876 2028 — Thereafter — Total $ 402,653

Other Assets (Tables)

Other Assets (Tables)	9 Months Ended
	Nov. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Principal components of other assets	Other assets consisted of the following as of November 30, 2023, and February 28, 2023: November 30, February 28, Deferred income tax asset $ 250 $ 304 Lease incentives and premiums, net of accumulated amortization of $87,544 and $77,722, respectively 32,814 54,208 Flight equipment held for sale 25,148 59,370 Aircraft purchase deposits and Embraer E-2 progress payments 45,308 43,494 Right-of-use asset (1) 16,390 16,930 Deferred rent receivable, net (2) 17,535 35,631 Investments, at fair value (3) 10,521 10,819 Other investments, net (2)(3) 5,079 — Other assets 147,159 125,574 Total other assets $ 300,204 $ 346,330 ______________ (1) Net of lease incentives and tenant allowances. (2) Net of an allowance for credit losses as of November 30, 2023 – see Note 15. (3) See Note 2.

Allowance for Credit Losses (Ta

Allowance for Credit Losses (Tables)	9 Months Ended
	Nov. 30, 2023
Credit Loss [Abstract]
Allowance for Credit Losses	The activity in the allowance for credit losses related to our net investment in leases, investments, and deferred rent receivables for the nine months ended November 30, 2023, was as follows: Net Investment in Leases, net Other Investments, net Deferred Rent Receivables, net Total Balance at February 28, 2023 $ 1,267 $ — $ — $ 1,267 Provision for credit losses 6,050 3,209 2,146 11,405 Write-offs (278) — — (278) Balance at November 30, 2023 $ 7,039 $ 3,209 $ 2,146 $ 12,394

Accounts Payable, Accrued Exp_2

Accounts Payable, Accrued Expenses and Other Liabilities (Tables)	9 Months Ended
	Nov. 30, 2023
Payables and Accruals [Abstract]
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet	Accounts payable, accrued expenses and other liabilities consisted of the following as of November 30, 2023, and February 28, 2023: November 30, February 28, Accounts payable, accrued expenses and other liabilities $ 53,603 $ 60,225 Deferred income tax liability 91,018 79,990 Accrued interest payable 52,521 42,752 Lease liability 19,541 19,951 Lease discounts, net of amortization of $43,940 and $45,586, respectively 2,864 3,555 Total accounts payable, accrued expenses and other liabilities $ 219,547 $ 206,473

Summary of Significant Accoun_3

Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details)	9 Months Ended
	Nov. 30, 2023 segment
Accounting Policies [Abstract]
Number of operating segments	1

Fair Value Measurements - Asset

Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Estimate of Fair Value Measurement | Significant Unobservable Inputs (Level 3) | Debt Securities
Assets:
Investment	$ 10,521	$ 10,819
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash and cash equivalents	105,832	231,861
Investment	2,048	2,346
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities
Assets:
Investment	0	0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities
Assets:
Investment	2,048	2,346
Recurring | Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Investment	0	0
Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities
Assets:
Investment	0	0
Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities
Assets:
Investment	0	0
Recurring | Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Investment	8,473	8,473
Recurring | Significant Unobservable Inputs (Level 3) | Debt Securities
Assets:
Investment	5,029	5,029
Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities
Assets:
Investment	3,444	3,444
Recurring | Estimate of Fair Value Measurement
Assets:
Cash and cash equivalents	105,832	231,861
Investment	10,521	10,819
Recurring | Estimate of Fair Value Measurement | Debt Securities
Assets:
Investment	5,029	5,029
Recurring | Estimate of Fair Value Measurement | Equity Securities
Assets:
Investment	$ 5,492	$ 5,790

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)	Nov. 30, 2023 USD ($)	Nov. 30, 2022 USD ($)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Transfers, net			$ 0
Revenue from Contract with Customer, Excluding Assessed Tax	$ 238,746	$ 257,516	625,193	$ 606,659
Impairment of flight equipment	34,959	$ 29,880	37,156	$ 67,979
Credit Loss Expense (Reversal)			$ 11,405
Maintenance Payments
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	37,700
Transactional
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impairment of flight equipment	25,500
Fleet Review
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impairment of flight equipment	$ 9,500
Fleet Review | Narrow-body [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of aircrafts impaired | aircraft	3
Fleet Review | Engines
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Number of aircrafts impaired | aircraft	1

Fair Value Measurements - Carry

Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement | Debt Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment	$ 10,521	$ 10,819
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement | Other Investments
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment	5,079	0
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement | Debt Securities
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment	10,521	10,819
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement | Other Investments
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Investment	5,079	0
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	130,000	20,000
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Revolving Credit Facility
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	130,000	20,000
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | DBJ Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	155,000	155,000
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	3,200,000	3,700,000
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | DBJ Term Loan
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	155,000	151,449
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | Senior Notes
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	3,056,270	3,524,563
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Term Financings
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	903,212	761,283
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Term Financings
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items]
Debt instruments	$ 903,182	$ 739,804

Flight Equipment Held for Lea_3

Flight Equipment Held for Lease, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Impaired Long-Lived Assets Held And Used [Roll Forward]
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation			$ 6,567,606
Depreciation	$ (86,647)	$ (82,872)	(261,764)	$ (246,296)
Transfers from flight equipment held for lease to Net investment in leases and Other assets			184,236	1,695
Impairments	(34,959)	$ (29,880)	(37,156)	$ (67,979)
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation	6,588,340		6,588,340
Flight Equipment
Impaired Long-Lived Assets Held And Used [Roll Forward]
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation			6,567,606
Additions			668,028
Depreciation			(261,073)
Transfers from flight equipment held for lease to Net investment in leases and Other assets			(350,165)
Impairments			(36,056)
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation	6,588,340		6,588,340
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation	$ 2,302,697		$ 2,302,697

Lease Rental Revenues (Details)

Lease Rental Revenues (Details) $ in Thousands	Nov. 30, 2023 USD ($)
Annual future minimum lease rentals receivable
2024 (Remainder of fiscal year)	$ 151,479
2025	555,800
2026	457,573
2027	396,182
2028	321,596
Thereafter	965,887
Total	$ 2,848,517

Lease Rental Revenues (Details

Lease Rental Revenues (Details Textual) - USD ($) $ in Millions	Nov. 30, 2023	Feb. 28, 2023
Maintenance Payments
Revenue, Major Customer [Line Items]
Lease incentive liabilities	$ 27.5	$ 22.4

Net Investment in Leases, Net_2

Net Investment in Leases, Net (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)	Feb. 28, 2023 aircraft
Operating Leased Assets [Line Items]
Number of leased assets | aircraft	13		13		4
Number of leased assets transferred in (out) | aircraft	10		10
Gain on sale or disposition of flight equipment	$ 20,193	$ 53,473	$ 67,240	$ 67,209
Provision for credit losses			6,050
Net Investment in Lease
Operating Leased Assets [Line Items]
Gain on sale or disposition of flight equipment			32,700
Provision for credit losses			$ 6,200

Net Investment in Leases, Net_3

Net Investment in Leases, Net (Details 2) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Capital Leases, Net Investment in Direct Financing Leases [Abstract]
Lease receivable	$ 131,070	$ 31,674
Unguaranteed residual value of flight equipment	124,811	37,287
Net investment leases	255,881	68,961
Allowance for credit losses	(7,039)	(1,267)
Net investment in leases, net	248,842	$ 67,694
2024 (Remainder of fiscal year)	6,972
2025	23,711
2026	22,884
2027	23,111
2028	23,111
Thereafter	73,548
Total lease payments to be received	173,337
Present value of lease payments - lease receivable	(131,070)
Difference between undiscounted lease payments and lease receivable	$ 42,267

Concentration of Risk (Details)

Concentration of Risk (Details) $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Nov. 30, 2023 USD ($) aircraft Lessee	May 31, 2023 Lessee	Nov. 30, 2022 USD ($) Lessee	Nov. 30, 2023 USD ($) aircraft Lessee	Nov. 30, 2022 USD ($) Lessee	Feb. 28, 2023 USD ($) aircraft	Jan. 05, 2024 aircraft
Concentration Risk [Line Items]
Number of Aircraft	236			236		239
Percentage	100%		100%	100%	100%	100%
Number of off-lease aircraft marketed for lease	6			6
Number of off-lease aircraft marketed for lease or sale						14
Gain on sale or disposition of flight equipment | $	$ 20,193		$ 53,473	$ 67,240	$ 67,209
Maintenance revenue | $	$ 58,657		56,574	$ 108,223	103,787
Asia and Pacific
Concentration Risk [Line Items]
Number of Aircraft	60			60		62
Europe
Concentration Risk [Line Items]
Number of Aircraft	88			88		88
Middle East and Africa
Concentration Risk [Line Items]
Number of Aircraft	6			6		8
North America
Concentration Risk [Line Items]
Number of Aircraft	44			44		38
South America
Concentration Risk [Line Items]
Number of Aircraft	32			32		29
United States
Concentration Risk [Line Items]
Net Book Value | $	$ 745,266			$ 745,266		$ 0
Net Book Value %		0%		11%
Number of Lessees | Lessee		0		5
Gain on sale or disposition of flight equipment | $	9,300		47,000		54,800
Maintenance revenue | $			$ 13,700		$ 13,900
KOREA, REPUBLIC OF
Concentration Risk [Line Items]
Maintenance revenue | $	$ 21,300
Geographic Concentration Risk | Net Book Value | Asia and Pacific
Concentration Risk [Line Items]
Percentage				27%		28%
Geographic Concentration Risk | Net Book Value | Europe
Concentration Risk [Line Items]
Percentage				30%		30%
Geographic Concentration Risk | Net Book Value | Middle East and Africa
Concentration Risk [Line Items]
Percentage				2%		3%
Geographic Concentration Risk | Net Book Value | North America
Concentration Risk [Line Items]
Percentage				24%		20%
Geographic Concentration Risk | Net Book Value | South America
Concentration Risk [Line Items]
Percentage				15%		14%
Geographic Concentration Risk | Net Book Value | Off Lease
Concentration Risk [Line Items]
Percentage				2%		5%
Geographic Concentration Risk | Lease Rental Revenue | Asia and Pacific
Concentration Risk [Line Items]
Percentage	28%		31%	29%	33%
Geographic Concentration Risk | Lease Rental Revenue | Europe
Concentration Risk [Line Items]
Percentage	28%		30%	30%	29%
Geographic Concentration Risk | Lease Rental Revenue | Middle East and Africa
Concentration Risk [Line Items]
Percentage	4%		5%	4%	5%
Geographic Concentration Risk | Lease Rental Revenue | North America
Concentration Risk [Line Items]
Percentage	23%		21%	23%	19%
Geographic Concentration Risk | Lease Rental Revenue | South America
Concentration Risk [Line Items]
Percentage	17%		13%	14%	14%
Geographic Concentration Risk | Total Revenue | United States
Concentration Risk [Line Items]
Percentage	11%		29%		18%
Largest lessees by lease rental revenue
Concentration Risk [Line Items]
Number of customers | Lessee	4		4	3	4
Largest lessees by lease rental revenue | Customer Concentration Risk | Lease Rental Revenue
Concentration Risk [Line Items]
Percentage	27%		25%	21%	27%
Narrow-body [Member] | Subsequent Event
Concentration Risk [Line Items]
Number of off-lease aircraft marketed for lease or sale							1

Unconsolidated Equity Method _3

Unconsolidated Equity Method Investment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)
Equity Method Investments [Roll Forward]
Beginning balance			$ 40,505
Earnings of unconsolidated equity method investment, net of tax	$ 925	$ 603	1,787	$ 1,780
Ending balance	$ 42,292		$ 42,292
Equity Method Investee
Schedule of Equity Method Investments [Line Items]
Total number of aircraft owned by joint ventures | aircraft	9		9
Net Book Value	$ 275,100		$ 275,100

Borrowings from Secured and U_3

Borrowings from Secured and Unsecured Debt Financings (Details) $ in Thousands	Nov. 30, 2023 USD ($) aircraft	Sep. 25, 2023 USD ($)	Jul. 18, 2023 USD ($)	Apr. 03, 2023 USD ($)	Feb. 28, 2023 USD ($)
Outstanding amounts of secured and unsecured term debt financings
Borrowings from secured financings	$ 894,913				$ 752,298
Borrowings from unsecured financings, net	$ 3,455,505				3,842,454
Number of Aircraft | aircraft
Total secured and unsecured debt financings, net of debt issuance costs and discounts	$ 4,350,418				4,594,752
Allowance for Credit Loss	12,394				1,267
Line of Credit | Revolving Credit Facility
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 130,000				20,000
Revolving Credit Facility | Minimum
Outstanding amounts of secured and unsecured term debt financings
Interest Rate	6.80%
Revolving Credit Facility | Maximum
Outstanding amounts of secured and unsecured term debt financings
Interest Rate	7.38%
Bank Financings | Notes Payable to Banks
Outstanding amounts of secured and unsecured term debt financings
Borrowings from secured financings	$ 903,212				761,283
Number of Aircraft | aircraft	38
Bank Financings | Notes Payable to Banks | Minimum
Outstanding amounts of secured and unsecured term debt financings
Interest Rate	2.36%
Bank Financings | Notes Payable to Banks | Maximum
Outstanding amounts of secured and unsecured term debt financings
Interest Rate	7.73%
Bank Financings | Notes Payable, Other Payables
Outstanding amounts of secured and unsecured term debt financings
Weighted-average fixed interest rate	5.46%
Secured Debt
Outstanding amounts of secured and unsecured term debt financings
Debt issuance costs and discounts	$ (8,299)				(8,985)
5.000% Senior Notes due 2023 | Senior Notes
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net				$ 500,000
Interest Rate				5%
5.000% Senior Notes due 2023 | Senior Notes | 5.00
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 0				500,000
Interest Rate	5%
4.400% Senior Notes due 2023 | Senior Notes
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net		$ 650,000
Interest Rate		4.40%
4.400% Senior Notes due 2023 | Senior Notes | 4.40%
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 0				650,000
Interest Rate	4.40%
Senior Notes due 2024 | Senior Notes | 4.125
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 500,000				500,000
Interest Rate	4.125%
Senior Notes due 2025 | Senior Notes | 5.25%
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 650,000				650,000
Interest Rate	5.25%
Senior Notes due 2026 | Senior Notes | 4.25%
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 650,000				650,000
Interest Rate	4.25%
2.850% Senior Notes due 2028 | Senior Notes | 2.85%
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 750,000				750,000
Interest Rate	2.85%
6.500% Senior Notes due 2028 | Senior Notes
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net			$ 650,000
6.500% Senior Notes due 2028 | Senior Notes | 6.50%
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 650,000				0
Interest Rate	6.50%		6.50%
Unsecured Term Loans | Notes Payable to Banks
Outstanding amounts of secured and unsecured term debt financings
Interest Rate	7.06%
Unsecured Term Loans | Unsecured Term Loans
Outstanding amounts of secured and unsecured term debt financings
Borrowings from unsecured financings, net	$ 155,000				155,000
Unsecured Debt
Outstanding amounts of secured and unsecured term debt financings
Debt issuance costs and discounts	$ (29,495)				$ (32,546)

Borrowings from Secured and U_4

Borrowings from Secured and Unsecured Debt Financings (Details Textual) $ in Thousands	Jan. 09, 2024 USD ($)	Nov. 21, 2022 aircraft	Nov. 30, 2023 USD ($) numberOfRevolvingCreditFacilities	Sep. 25, 2023 USD ($)	Aug. 16, 2023 USD ($)	Jul. 18, 2023 USD ($)	Jun. 05, 2023 USD ($)	Apr. 03, 2023 USD ($)	Feb. 28, 2023 USD ($)
Debt Instrument [Line Items]
Borrowings from secured financings, net			$ 894,913						$ 752,298
Borrowings from unsecured financings, net			3,455,505						3,842,454
Remaining borrowing capacity			1,700,000
2022 Secured Facility | Secured Debt
Debt Instrument [Line Items]
Amount borrowed during the current period			168,700
Borrowings from secured financings, net			$ 447,700
Maximum number of aircraft secured by debt instrument | aircraft		17
2022 Secured Facility | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Debt Instrument [Line Items]
Basis spread		2.35%
5.000% Senior Notes due 2023 | Senior Notes
Debt Instrument [Line Items]
Interest rate								5%
Borrowings from unsecured financings, net								$ 500,000
6.500% Senior Notes due 2028 | Senior Notes
Debt Instrument [Line Items]
Borrowings from unsecured financings, net						$ 650,000
Debt issue price percent						99.815%
6.500% Senior Notes due 2028 | Senior Notes | 6.50%
Debt Instrument [Line Items]
Interest rate			6.50%			6.50%
Borrowings from unsecured financings, net			$ 650,000						0
4.400% Senior Notes due 2023 | Senior Notes
Debt Instrument [Line Items]
Interest rate				4.40%
Borrowings from unsecured financings, net				$ 650,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Borrowings from unsecured financings, net			$ 130,000						$ 20,000
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Number of debt instrument at time of issuance | numberOfRevolvingCreditFacilities			1
Current borrowing capacity					$ 375,000
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Subsequent Event
Debt Instrument [Line Items]
Basis spread	1.95%
Current borrowing capacity	$ 600,000
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Tranche C ($245mm) - DBS Revolving Credit Facility
Debt Instrument [Line Items]
Current borrowing capacity							$ 245,000

Shareholders_ Equity (Details)

Shareholders’ Equity (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Nov. 30, 2023 USD ($) $ / shares shares	Aug. 31, 2023 USD ($)	May 31, 2023 USD ($)	Aug. 31, 2022 USD ($)	Jul. 05, 2023 USD ($) numberOfTranchesForSubscriptionAgreement shares	Feb. 28, 2023 $ / shares shares
Class of Stock [Line Items]
Common shares, par value | $ / shares	$ 0.01					$ 0.01
Common stock, value, subscriptions					$ 500,000
Number of tranches | numberOfTranchesForSubscriptionAgreement					2
Issuance of common shares (in shares) | shares	15,564				1,516	14,048
Preference share dividends	$ 10,500	$ 10,500	$ 10,500	$ 10,500
Subscription Agreement with Marubeni/Mizuho - Tranche One ($200.0 million)
Class of Stock [Line Items]
Common stock, value, subscriptions					$ 200,000
Subscription Agreement with Marubeni/Mizuho - Tranche Two ($300.0 million)
Class of Stock [Line Items]
Common stock, value, subscriptions					$ 300,000

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Marubeni Service Agreement
Related Party Transaction [Line Items]
Amounts of transactions	$ 2.2	$ 1.3	$ 6.3	$ 3.9
Marubeni Affiliate Parts Management Services and Supply Agreement
Related Party Transaction [Line Items]
Amounts of transactions	$ 0.2	$ 0.4	$ 1.3	$ 3.7

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Sources of income from continuing operations before income taxes
U.S. operations	$ 7,518	$ 5,868	$ 18,388	$ 15,994
Non-U.S. operations	23,227	66,704	49,044	53,651
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment	$ 30,745	$ 72,572	$ 67,432	$ 69,645

Income Taxes (Textual) (Details

Income Taxes (Textual) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 6,025	$ 23,071	$ 15,286	$ 22,332
Effective tax rate			22.70%	32.10%

Interest, Net (Details)

Interest, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023	Nov. 30, 2022	Nov. 30, 2023	Nov. 30, 2022
Interest Income (Expense), Net [Abstract]
Interest on borrowings and other liabilities	$ 56,746	$ 49,436	$ 170,751	$ 145,069
Amortization of deferred financing fees and debt discount	4,290	3,517	12,611	10,612
Interest expense	61,036	52,953	183,362	155,681
Less: Interest income	(3,323)	(1,394)	(10,351)	(2,401)
Less: Capitalized interest	(676)	(802)	(2,048)	(1,642)
Interest, net	$ 57,037	$ 50,757	$ 170,963	$ 151,638

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)	Nov. 30, 2023 USD ($) aircraft	Nov. 30, 2022 USD ($)
Types of Commercial Aircraft [Line Items]
Rent expense	$ 600	$ 500	$ 1,800	$ 1,400
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2024 (Remainder of fiscal year)	735		735
2025	2,957		2,957
2026	2,801		2,801
2027	2,738		2,738
2028	2,769		2,769
Thereafter	17,817		17,817
Total	$ 29,817		$ 29,817
Committed to acquire aircraft | aircraft	12		12
Purchase Obligation, Fiscal Year Maturity [Abstract]
2024 (Remainder of fiscal year)	$ 26,500		$ 26,500
2025	73,934		73,934
2026	204,343		204,343
2027	97,876		97,876
2028	0		0
Thereafter	0		0
Total	402,653		402,653
Pre-Delivery Payments
Purchase Obligation, Fiscal Year Maturity [Abstract]
Total	$ 34,400		$ 34,400

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Principal components of other assets
Deferred income tax asset	$ 250	$ 304
Lease incentives and premiums, net of accumulated amortization of $87,544 and $77,722, respectively	32,814	54,208
Flight equipment held for sale	25,148	59,370
Aircraft purchase deposits and Embraer E-2 progress payments	45,308	43,494
Right-of-use asset	16,390	16,930
Deferred rent receivable, net(2)	17,535	35,631
Investments, at fair value(3)	10,521	10,819
Other Investments	5,079	0
Other assets	147,159	125,574
Total other assets	300,204	346,330
Lease incentives and lease premiums, accumulated amortization	$ 87,544	$ 77,722

Allowance for Credit Losses - S

Allowance for Credit Losses - Schedule of Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Nov. 30, 2023	Feb. 28, 2023
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance for credit losses	$ 7,039	$ 1,267
Other Investments Net Allowance for Credit Loss Writeoff	3,209	0
Deferred Rent Receivables Net, Allowance for Credit Loss	2,146	0
Allowance for Credit Loss	12,394	$ 1,267
Provision for credit losses	6,050
Credit Loss Expense (Reversal)	11,405
Net Investment in Lease, Allowance for Credit Loss, Writeoff	(278)
Other Investments Net Allowance for Credit Loss Writeoff	0
Deferred Rent Receivables Net Allowance for Credit Loss Writeoff	0
Allowance for Credit Loss Write-off	(278)
Other Investments, net
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Credit Loss Expense (Reversal)	3,209
Deferred Rent Receivable, net
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Credit Loss Expense (Reversal)	$ 2,146

Allowance for Credit Losses - N

Allowance for Credit Losses - Narrative (Details)	Nov. 30, 2023 aircraft
Credit Loss [Abstract]
Number of leased assets transferred in (out)	10

Accounts Payable, Accrued Exp_3

Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands	Nov. 30, 2023	Feb. 28, 2023
Payables and Accruals [Abstract]
Accounts payable, accrued expenses and other liabilities	$ 53,603	$ 60,225
Deferred income tax liability	91,018	79,990
Accrued interest payable	52,521	42,752
Lease liability	19,541	19,951
Lease discounts, net of amortization of $43,940 and $45,586, respectively	2,864	3,555
Total accounts payable, accrued expenses and other liabilities	219,547	206,473
Deferred lease income, accumulated amortization	$ 43,940	$ 45,586

Subsequent Event - Narrative (D

Subsequent Event - Narrative (Details) $ / shares in Units, $ in Millions	Dec. 26, 2023 USD ($) aircraft	Nov. 30, 2023 $ / shares	Jul. 05, 2023 USD ($) numberOfTranchesForSubscriptionAgreement	Feb. 28, 2023 $ / shares
Subsequent Event [Line Items]
Common Stock, Par or Stated Value Per Share | $ / shares		$ 0.01		$ 0.01
Common stock, value, subscriptions			$ 500
Number of tranches | numberOfTranchesForSubscriptionAgreement			2
Subscription Agreement with Marubeni/Mizuho - Tranche One ($200.0 million)
Subsequent Event [Line Items]
Common stock, value, subscriptions			$ 200
Subscription Agreement with Marubeni/Mizuho - Tranche Two ($300.0 million)
Subsequent Event [Line Items]
Common stock, value, subscriptions			$ 300
Subsequent Event
Subsequent Event [Line Items]
Proceeds from Insurance Settlement, Operating Activities	$ 43.2
Subsequent Event | Aircraft Remaining in Country of Base Operations | RUSSIAN FEDERATION
Subsequent Event [Line Items]
Number of Aircraft Previously on Lease with Russian Airlines | aircraft	9
Subsequent Event | Aircraft Remaining in Country of Base Operations | RUSSIAN FEDERATION | Settlement Resolved
Subsequent Event [Line Items]
Number of Aircraft Previously on Lease with Russian Airlines | aircraft	4
Subsequent Event | Aircraft Remaining in Country of Base Operations | RUSSIAN FEDERATION | Settlement Discussions Ongoing
Subsequent Event [Line Items]
Number of Aircraft Previously on Lease with Russian Airlines | aircraft	5

Uncategorized Items - ayr-20231

Label	Element	Value
Common Stock [Member]
Common Stock, Shares, Issued	us-gaap_CommonStockSharesIssued	1,516