Financial Performance - Total consolidated assets as of June 30, 2024, were $3.4 billion, with total equity of $69.6 million[137]. - Lease income for the three months ended June 30, 2024, was $70.754 million, an increase of 18.8% from $59.541 million in the same period of 2023[147]. - Aerospace products revenue surged to $245.200 million for the three months ended June 30, 2024, compared to $92.725 million in 2023, reflecting a growth of 164.5%[147]. - Total revenues for the six months ended June 30, 2024, reached $770.288 million, up 35.8% from $567.063 million in 2023[147]. - Total revenues increased by $169.2 million for the three months ended June 30, 2024, primarily due to a $152.5 million increase in Aerospace products revenue[150]. - Aerospace products revenue for the six months ended June 30, 2024, increased by $256.4 million, driven by sales of CFM56-7B, CFM56-5B, and V2500 engines[154]. - Total revenues for the three months ended June 30, 2024, increased by $17.1 million to $184.4 million, driven by increases in Lease income and Maintenance revenue[176]. - Total revenues for the six months ended June 30, 2024, decreased by $46.7 million to $319.7 million, primarily due to a decline in Asset sales revenue[177]. Expenses and Losses - The company incurred $300 million in internalization fees during the three months ended June 30, 2024, as part of the management function internalization[138]. - An impairment charge of $120 million was recognized due to the inability to recover aircraft and engines from Russia and Ukraine[140]. - Total expenses for the three months ended June 30, 2024, were $661.385 million, significantly higher than $217.765 million in the same period of 2023, marking an increase of 203.5%[147]. - Total expenses increased by $443.6 million for the three months ended June 30, 2024, mainly due to a $300.0 million increase in internalization fees to affiliates[157]. - Total expenses for the three months ended June 30, 2024, increased by $28.3 million to $122.4 million, mainly due to higher Depreciation and amortization, Cost of sales, and Operating expenses[179]. - Total expenses rose by $96.2 million (164.2%) and $157.9 million (135.7%) for the three and six months ended June 30, 2024, primarily due to increased costs of sales and operating expenses[190][191]. - Net loss attributable to shareholders for the three months ended June 30, 2024, was $228.205 million, compared to a profit of $46.418 million in 2023[147]. - Net loss attributable to shareholders was $365.9 million for the three months ended June 30, 2024, compared to a loss of $59.4 million in the same period of 2023[198]. - Net loss attributable to shareholders increased by $306.4 million to $(365.9) million for the three months ended June 30, 2024, compared to $(59.4) million in 2023[207]. Income and EBITDA - Adjusted EBITDA increased by $60.8 million for the three months ended June 30, 2024, totaling $213.9 million[171]. - Net income attributable to shareholders decreased by $274.6 million for the three months ended June 30, 2024, compared to the prior year[170]. - Net income attributable to shareholders decreased by $19.8 million to $52.8 million for the three months ended June 30, 2024[183]. - Adjusted EBITDA for the three months ended June 30, 2024, increased by $3.8 million to $125.0 million[184]. - Adjusted EBITDA decreased by $3.2 million to $(13.3) million for the six months ended June 30, 2024, compared to $(10.1) million in 2023[208]. - Adjusted EBITDA increased by $56.5 million (162.0%) and $99.4 million (159.9%) for the three and six months ended June 30, 2024, respectively[195]. Assets and Utilization - As of June 30, 2024, the company owned and managed 391 aviation assets, including 99 commercial aircraft and 292 engines[172]. - The aviation equipment utilization rate was approximately 81% during the six months ended June 30, 2024[173]. - The average remaining lease term for aircraft was 45 months, while for engines it was 22 months as of June 30, 2024[173]. Cash Flow and Financing - Cash used in operating activities increased by $254.9 million to $(187.6) million for the six months ended June 30, 2024, compared to $67.2 million in 2023[216]. - Net cash provided by financing activities increased by $483.1 million, primarily due to proceeds from debt of $1.5 billion[218]. - As of June 30, 2024, the company had outstanding principal and interest payment obligations of $3.1 billion and $1.3 billion, respectively[219]. Management and Strategy - The company expects to continue pursuing acquisition opportunities in its markets, leveraging its expertise and access to capital[137]. - The company acquired the remaining interest in Quick Turn Engine Center LLC in December 2023, enhancing its capabilities in engine maintenance and testing[185]. - The company is evaluating several potential transactions and related financings in the aviation sector, which could occur within the next 12 months[215]. - The company anticipates savings in operation costs as a result of the internalization of management[214]. Interest Rate Risk - The company is exposed to interest rate risk, which may affect net income due to increased borrowing costs without corresponding increases in rents or cash flow from leases[226]. - The company amended its revolving credit facility to incorporate SOFR as the successor rate to LIBOR in anticipation of LIBOR's phase-out[227]. - As of June 30, 2024, a hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would not have increased or decreased interest expense over the next 12 months[230]. - The company may manage its exposure to interest rate movements through the use of interest rate derivatives such as swaps and caps[228]. - The sensitivity analysis indicates that changes in interest rates could have potential impacts on financial instruments, but these should not be viewed as forecasts[229].

Financial Performance - Total revenues for the three months ended March 31, 2024, increased by $34.0 million to $326.7 million compared to $292.7 million in 2023[129] - Aerospace products revenue surged by $103.9 million, primarily driven by increased sales of CFM56-7B, CFM56-5B, and V2500 engines[130] - Maintenance revenue rose by $10.6 million due to a higher number of aircraft and engines placed on lease[130] - Total expenses increased by $21.5 million, driven by higher depreciation and amortization, interest expense, and acquisition expenses[132] - Adjusted EBITDA for the three months ended March 31, 2024, increased by $36.4 million to $164.1 million compared to $127.7 million in 2023[140] - Net income attributable to shareholders for the three months ended March 31, 2024, was $31.3 million, an increase of $8.7 million from $22.6 million in 2023[128] Aviation Leasing Segment - As of March 31, 2024, the Aviation Leasing segment managed 380 aviation assets, including 103 commercial aircraft and 277 engines[141] - Total revenues for the Aviation Leasing segment decreased by $63.7 million to $135.3 million, primarily due to a $70.1 million decrease in asset sales revenue[143][146] - Maintenance revenue increased by $10.6 million, driven by a higher number of aircraft and engines placed on lease and increased utilization[150] - Total expenses decreased by $50.2 million to $89.9 million, mainly due to a $60.3 million reduction in cost of sales[147] - Net income attributable to shareholders for the Aviation Leasing segment decreased by $15.2 million to $42.6 million[149] - Adjusted EBITDA for the Aviation Leasing segment decreased by $2.7 million to $104.8 million[152][160] Aerospace Products Segment - Aerospace Products segment revenue increased by $103.9 million to $189.1 million, primarily due to increased sales of CFM56-7B, CFM56-5B, and V2500 engines[154][156] - Total expenses in the Aerospace Products segment rose by $61.6 million to $119.6 million, largely due to increased costs of sales and operating expenses[157] - Net income attributable to shareholders in the Aerospace Products segment increased by $41.4 million to $66.4 million[159] - Adjusted EBITDA for the Aerospace Products segment increased by $42.9 million to $70.3 million[152][160] Impairment and Utilization - The company recognized an impairment charge of $120.0 million related to leasing equipment assets in Russia due to the ongoing conflict[119] - As of March 31, 2024, the aviation equipment utilization rate was approximately 78%, with a weighted average remaining lease term of 44 months for aircraft and 19 months for engines[142] Tax and Interest Expenses - The provision for income taxes increased by $2.0 million due to a reduction in a deferred tax asset related to a tax law change in Bermuda[151] - Interest expense rose by $8.4 million, reflecting an increase in average debt outstanding of approximately $417.1 million[173] Cash Flow and Investments - Cash used for investments was $303.0 million in Q1 2024, compared to $167.0 million in Q1 2023[174] - Net cash provided by operating activities decreased by $39.0 million to $(0.3) million in Q1 2024[175] - As of March 31, 2024, the company had outstanding principal and interest payment obligations of $2.7 billion and $0.7 billion, respectively[178] - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[181] - A hypothetical 100-basis point increase in variable interest rates would result in an increase of approximately $1.8 million in interest expense over the next 12 months[189] Offshore Energy Business - Total revenues decreased by $6.2 million to $2.3 million in Q1 2024, primarily due to a decrease in the Offshore Energy business as one vessel was off-hire[164] - Total expenses increased by $10.1 million to $72.0 million, driven by higher interest expense, acquisition and transaction expenses, and management fees[165] - Net loss attributable to shareholders increased by $17.5 million to $77.7 million in Q1 2024[167] - Adjusted EBITDA decreased by $3.7 million to $(10.98) million, reflecting the changes in revenues and expenses[168]

Financial Performance - For the year ended December 31, 2023, total revenues increased to $1,170.9 million, a 65.2% increase from $708.4 million in 2022[202]. - Net income attributable to shareholders for 2023 was $212.0 million, compared to a net loss of $220.4 million in 2022[202]. - Net income attributable to shareholders from continuing operations for 2023 was $212.0 million, a significant increase of $349.8 million compared to a loss of $137.8 million in 2022[203]. - The aviation leasing segment reported a net income attributable to shareholders of $291.6 million for 2023, a significant increase from $56.9 million in 2022[237]. - Net income attributable to shareholders surged to $180.18 million in 2023, up from $70.66 million in 2022, marking a $109.52 million increase[254]. Revenue Breakdown - Lease income for 2023 was $207.9 million, up 16.0% from $179.3 million in 2022[202]. - Maintenance revenue rose to $191.3 million, a 28.5% increase from $148.8 million in 2022[202]. - Aerospace products revenue surged to $455.0 million, a 153.8% increase from $178.5 million in 2022[202]. - Total revenues for the Aviation Leasing segment increased by $178.7 million to $681.6 million in 2023, driven by increases in asset sales revenue, maintenance revenue, and lease income[239]. - Asset sales revenue rose by $119.6 million primarily due to increased sales of commercial aircraft and engines[241]. Expenses and Costs - Total expenses increased by $122.0 million, mainly due to higher cost of sales, management fees, and depreciation and amortization[210]. - Cost of sales rose by $253.7 million, attributed to increased asset sales and Aerospace Product sales[210]. - Total expenses rose by $181.2 million to $303.12 million in 2023, primarily due to increased costs of sales and operating expenses[256]. - Operating expenses rose by $48.5 million, largely due to increased provisions for credit losses and other operational costs[253]. Adjusted EBITDA - The company reported Adjusted EBITDA as a key performance measure, reflecting operational performance[200]. - Adjusted EBITDA for 2023 rose to $597.3 million, reflecting an increase of $169.2 million from $428.1 million in 2022[217]. - Adjusted EBITDA increased by $87.2 million to $467.4 million, reflecting improved operational performance[244]. - Adjusted EBITDA increased by $85.7 million to $160.01 million in 2023, compared to $74.35 million in 2022[259]. Tax and Impairment - The benefit from income taxes increased by $65.1 million, largely due to the establishment of a deferred tax asset of $72.2 million in Bermuda[214]. - The company established a deferred tax asset of $46.6 million in Bermuda, contributing to a $38.7 million increase in the benefit from income taxes[243]. - The company recognized an impairment charge of $120.0 million for leasing equipment assets related to the impact of Russia's invasion of Ukraine[189]. Cash Flow and Financing - Net cash used in operating activities decreased by $149.6 million, primarily due to a reduction in net loss by $455.8 million[290]. - Net cash provided by financing activities increased by $237.3 million, driven by a decrease in debt repayment and an increase in proceeds from debt and preferred shares[292]. - Cash flows from operating activities, plus principal collections on finance leases, totaled $163.0 million in 2023, up from $29.4 million in 2022[293]. - The company issued $500 million in Senior Notes due 2030, using part of the proceeds to repay $250 million of outstanding borrowings[280]. Assets and Utilization - Total consolidated assets as of December 31, 2023, were $3.0 billion, with total equity of $175.9 million[188]. - As of December 31, 2023, the Aviation Leasing segment owned and managed 363 aviation assets, including 96 commercial aircraft and 267 engines[234]. - As of December 31, 2023, the aviation equipment utilization rate was approximately 77%, with a weighted average remaining lease term of 47 months for aircraft and 16 months for engines[235]. Dividends and Liquidity - The company declared cash dividends of $119.8 million on ordinary shares and $31.8 million on preferred shares during 2023[299]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, and net cash provided by current operations[300]. Risk Management - The company is exposed to interest rate risk, particularly related to term loan arrangements, and may manage this exposure through interest rate derivatives[315][317]. - A hypothetical 100-basis point increase or decrease in the variable interest rate on borrowings would not have affected interest expense over the next 12 months as of December 31, 2023[319].

Financial Performance - Total revenues for the three months ended September 30, 2023, were $291.1 million, an increase of 26.4% compared to $230.4 million in the same period of 2022[143]. - Net income from continuing operations for the three months ended September 30, 2023, was $41.3 million, a significant increase from a net loss of $4.1 million in the same period of 2022[143]. - Net income attributable to shareholders from continuing operations increased to $32.973 million for Q3 2023, compared to a loss of $10.938 million in Q3 2022, representing a change of $43.911 million[144]. - Adjusted EBITDA for Q3 2023 was $154.218 million, an increase of $45.355 million compared to $108.863 million in Q3 2022[144]. - Net income from continuing operations increased by $45.5 million for Q3 2023 and $262.9 million for the nine months ended September 30, 2023[159]. - Adjusted EBITDA for the nine months ended September 30, 2023, increased by $130.4 million compared to the prior year[161]. Revenue Breakdown - Aerospace products revenue surged by 100.5% to $107.1 million in Q3 2023 compared to $53.4 million in Q3 2022[143]. - Maintenance revenue for the three months ended September 30, 2023, increased by $28.4 million, attributed to early redelivery of four aircraft and higher aircraft utilization[168]. - Total revenues for the nine months ended September 30, 2023, increased by $246.1 million, driven by increases in Asset sales revenue, Maintenance revenue, and Lease income[167]. - Lease income for the nine months ended September 30, 2023, increased by $21.3 million, primarily due to an increase in the number of aircraft and engines placed on lease[168]. Expenses and Impairments - Total expenses for the three months ended September 30, 2023, were $246.6 million, an increase of 17.9% from $209.1 million in Q3 2022[143]. - The company recognized an impairment charge of $120.0 million related to leasing equipment assets due to the impact of sanctions on Russian airlines[130]. - Total expenses for Q3 2023 increased by $37.5 million, mainly due to higher Cost of sales, Operating expenses, and Depreciation and amortization[152]. - Total expenses rose by $32.8 million (94.5%) and $100.4 million (157.7%) for the three and nine months ended September 30, 2023, primarily due to increased cost of sales and operating expenses[180]. Asset Management - As of September 30, 2023, the Aviation Leasing segment owned and managed 351 aviation assets, including 92 commercial aircraft and 259 engines[162]. - The utilization rate of aviation equipment was approximately 77% during Q3 2023, with a weighted average remaining lease term of 47 months for aircraft[163]. - Asset sales revenue decreased by $12.5 million in Q3 2023, primarily due to a decline in the sale of commercial aircraft and engines[147]. Cash Flow and Financing - Cash flows provided by operating activities increased by $138.1 million, reflecting an increase in net income of $364.3 million for the nine months ended September 30, 2023[197]. - Cash used for investments was $562.8 million during the nine months ended September 30, 2023, compared to $545.7 million in the same period of 2022[196]. - Principal and interest payment obligations as of September 30, 2023, totaled $2.3 billion and $0.5 billion, respectively, with $164.2 million due in the next twelve months[201]. - The company is evaluating several potential transactions and related financings, including additional debt and equity financings, which could occur within the next 12 months[195]. Other Income and Taxation - Total other income decreased by $61.8 million during the nine months ended September 30, 2023, primarily due to a decrease in Gain on sale of assets, net[172]. - The provision for income taxes decreased by $1.5 million (56.3%) for the three months ended September 30, 2023, compared to the same period in 2022[178]. Interest Rate Sensitivity - As of September 30, 2023, a hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately $2.5 million in interest expense over the next 12 months[212]. - The sensitivity analysis regarding interest rate changes is constrained by several factors, including the inability to include complex market reactions[211]. - The analysis does not account for the mark-to-market impact on interest rate derivatives or other potential factors affecting the business due to interest rate changes[211]. - The Series A and Series B preferred shares will accrue interest at a floating rate starting September 15, 2024, based on a variable interest rate index plus a spread[211].

Financial Performance - For the three months ended June 30, 2023, total revenues increased by 145% to $274.3 million compared to $112.1 million in the same period of 2022[145]. - Net income attributable to shareholders from continuing operations for the three months ended June 30, 2023, was $46.4 million, compared to $11.4 million in the same period of 2022, a significant increase of 305%[145]. - Total revenues for the six months ended June 30, 2023, increased by $237.9 million to $391.1 million compared to $153.1 million in the same period of 2022[171]. - Net income attributable to shareholders from continuing operations was $28.6 million for the three months ended June 30, 2023, compared to $15.1 million for the same period in 2022, reflecting a $13.5 million increase (approximately 89.5%)[182]. Revenue Breakdown - Lease income for the three months ended June 30, 2023, was $59.5 million, up from $39.6 million in the same period of 2022, representing a 50% increase[145]. - Aerospace products revenue surged by 157% to $68.1 million for the three months ended June 30, 2023, compared to $26.5 million in the same period of 2022[145]. - Asset sales revenue increased by $101.5 million, driven by higher sales of commercial aircraft and engines in the Aviation Leasing segment[148]. - Aerospace products revenue rose by $41.6 million, mainly from increased sales of CFM56-7B and CFM56-5B engines and related components[149]. - Total revenues increased by $162.3 million for the three months ended June 30, 2023, primarily due to an increase in asset sales revenue, aerospace products revenue, and lease income[148]. Expenses and Costs - The company reported total expenses of $217.8 million for the three months ended June 30, 2023, compared to $129.3 million in the same period of 2022, an increase of 68%[145]. - Total expenses increased by $88.4 million, primarily due to higher cost of sales, operating expenses, and management fees[154]. - Cost of sales rose by $89.4 million, reflecting increased asset sales and aerospace products sales[154]. - Total expenses for the three months ended June 30, 2023, increased by $68.6 million to $114.0 million compared to $45.4 million in the same period of 2022[173]. Adjusted EBITDA - Adjusted EBITDA for the three months ended June 30, 2023, was $56.6 million, compared to $47.5 million in the same period of 2022, reflecting a 23% increase[145]. - Adjusted EBITDA increased by $2.3 million and $85.0 million for the three and six months ended June 30, 2023, respectively[165]. - Adjusted EBITDA increased by $13.0 million (approximately 76.2%) and $27.3 million (approximately 90.5%) for the three and six months ended June 30, 2023, respectively[187]. Impairment and Charges - The company recognized an impairment charge of $120.0 million related to leasing equipment assets due to the impact of sanctions on Russian airlines[132]. - Asset impairment decreased by $122.5 million primarily due to the write-down in 2022 of aircraft and engines located in Ukraine and Russia[179]. Cash Flow and Investments - Cash flows provided by operating activities increased by $115.8 million, primarily due to an increase in net income of $304.0 million and changes in working capital of $50.9 million[202]. - Cash used for investments was $380.8 million during the six months ended June 30, 2023, compared to $457.9 million in the same period of 2022[201]. - Proceeds from the sale of assets were $273.2 million during the six months ended June 30, 2023, compared to $142.3 million in 2022[201]. Dividends and Shareholder Returns - The spin-off of FTAI Infrastructure resulted in a dividend payment of $730.3 million to the company, which was used to repay outstanding borrowings[136]. - The company declared cash dividends of $122.5 million and $28.7 million on ordinary and preferred shares, respectively, over the last twelve months[208]. Debt and Liquidity - The company had outstanding principal and interest payment obligations of $2.2 billion and $0.6 billion, respectively, as of June 30, 2023[206]. - The company expects to meet future short-term liquidity requirements through cash on hand, unused borrowing capacity, or future financings[209]. Interest Rate Sensitivity - As of June 30, 2023, a hypothetical 100-basis point increase/decrease in the variable interest rate on borrowings would result in an increase or decrease of approximately $1.5 million in interest expense over the next 12 months[217]. - The sensitivity analysis regarding interest rate changes is based on a single point in time and does not account for complex market reactions[216]. - The analysis does not include the impact on interest rate derivatives or other potential factors affecting the business due to interest rate changes[216].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-37386 FTAI AVIATION LTD. (Exact name of registrant as specified in its charter) | Cayman Islands | | 98-1420784 | | | --- | --- | ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____ Commission file number 001-37386 FTAI AVIATION LTD. (Exact name of registrant as specified in its charter) | Cayman Islands | | | 98-1420784 | | --- | --- | --- ...