Regional aircraft and engine lessor AeroCentury Corp reported a drop in first quarter total revenues to $4.9 million from revenues of $8.8 million for the same period a year ago.
The lessor reported a net loss of $2.3 million for the quarter compared with net income of $1.9 million in the year-earlier period.
Operating lease revenue was lower for the quarter by approximately $2.5 million. This was due "primarily to a greater number of aircraft that were off lease for all or part of the 2011 period and certain assets that were re-leased in 2010 at lower rates", says AeroCentury in a release. In the 2011 period, the lessor also recorded a reduction in operating lease revenue due to "uncertainty about the collectibility of the related receivables". The effect of these reductions were partially offset by an "increase in revenue related to aircraft that were on lease in the 2011 period, but were off lease in the 2010 period".
Maintenance reserves revenue was approximately $0.9 million lower in the quarter ended as a result of "lower average usage by some lessees" in the 2011 period and the effect of off-lease aircraft.