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Global aircraft leasing company FLY Leasing Limited has announced a net loss of $12.5 million in the third quarter of 2017, which the company says is primarily driven by a $22 million non-cash impairment charge resulting from the financial collapse of one of its lessees.

Dublin-based FLY leases its aircraft under multi-year lease contracts to a diverse group of airlines throughout the world.

FLY is managed and serviced by US specialist BBAM, a worldwide leader in aircraft lease management and financing.

FLY reported income for the quarter was almost half the $22.9 million recorded for the same period in 2016. Net loss for the nine months ended September 30, 2017 was $4.6 million. For the same nine-month period in 2016, net income was $34.7 million.

As a result of a lessee’s insolvency filing during the third quarter, FLY recorded an impairment charge of $22.0 million on a 2001 vintage Airbus A330-200 to write the aircraft down to its estimated current market value.

At September 30, 2017, FLY’s total assets were $3.5 billion, including investment in flight equipment totaling $3.1 billion. FLY’s 84 aircraft were on lease to 45 airlines in 29 countries.

Colm Barrington, CEO of FLY, said: “We were active on several fronts this quarter as we acquired three aircraft, including another new 737 MAX 8, repurchased a further 1.5 million shares and refinanced our unsecured notes that were due 2020.

“We have acquired eight aircraft in the first nine months of 2017 for a total of $403 million, growing the fleet to 84 aircraft. Our growth capacity remains strong with the ability to acquire over $2 billion worth of new aircraft without the need to raise additional funds.”

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