v3.26.3
Concentration of Risk
 6 Months Ended
Aug. 31, 2026
Risks and Uncertainties [Abstract]  
Concentration of Risk 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 August 31, 2026 and February 28, 2026, was as follows:
August 31, 2026February 28, 2026
RegionNumber
of
Aircraft		Net Book
Value %		Number
of
Aircraft		Net Book
Value %
Asia and Pacific71 30 %70 27 %
Europe69 21 %79 23 %
Middle East and Africa14 5 %14 5 %
North America66 30 %72 30 %
South America32 11 %36 12 %
Off-lease11 
(1)
3 %6 3 %
Total263 100 %277 100 %
_______________
(1)The number of aircraft off-lease was impacted by certain aircraft previously leased to a customer that has since ceased operations, which are expected to remain off-lease for an extended period, as well as aircraft redeliveries during the period and the timing of related transitions and sales. Of the 11 off-lease aircraft as of August 31, 2026, 4 aircraft have subsequently been sold, delivered to a customer, or are subject to a confirmed letter of intent for lease. Of the remaining 7 aircraft, 4 are expected to remain off-lease for an extended period, while the remaining 3 aircraft are being marketed for lease or sale.
The following table sets forth the net book value of our flight equipment attributable to individual countries that represent at least 10% of the total net book value of our flight equipment held for lease, based on each lessee’s principal place of business, as of August 31, 2026 and February 28, 2026:
August 31, 2026February 28, 2026
CountryNet Book
Value		Net Book
Value %		Number
of
Lessees		Net Book
Value		Net Book
Value %		Number
of
Lessees
United States$1,406,992 17%5$1,516,062 18%8
India1,338,434 16%31,161,997 14%4
The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows:
Three Months Ended August 31,Six Months Ended August 31,
Region2026202520262025
Asia and Pacific29 %26 %28 %27 %
Europe25 %27 %25 %28 %
Middle East and Africa5 %5 %5 %5 %
North America30 %30 %31 %29 %
South America11 %12 %11 %11 %
Total100 %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 August 31,Six Months Ended August 31,
2026202520262025
Number of LesseesCombined % of Lease
Rental Revenue		Number of LesseesCombined % of Lease
Rental Revenue		Number of LesseesCombined % of Lease
Rental Revenue		Number of LesseesCombined % of Lease
Rental Revenue
Largest lessees by lease rental revenue323%216%322%216%
For the three months ended August 31, 2026, total revenue attributable to the United States and India was 22% and 10%, respectively. Total revenue attributable to the United States included $22.7 million from gains on sale or disposition of flight equipment.
For the six months ended August 31, 2026, total revenue attributable to the United States and India was 19% and 11%, respectively. Total revenue attributable to the United States included $22.6 million from gains on sale or disposition of flight equipment.
Middle East Conflict
Ongoing armed conflicts and heightened geopolitical tensions in the Middle East have disrupted, and may continue to disrupt, commercial aviation and broader economic activity in the region and globally. Recent escalations have contributed to volatility in oil and jet fuel prices, increasing operating costs and placing additional pressure on airline profitability and liquidity.
While the ultimate impact on our business, financial condition and results of operations remains uncertain, these conditions have adversely affected, and may continue to adversely affect, commercial aviation activity, including through airspace closures, reduced flight operations, increased fuel and insurance costs, supply chain disruptions and broader macroeconomic effects. Such conditions could result in lease restructurings, payment deferrals or defaults.
As of and for the six months ended August 31, 2026, our airline customers located in the Middle East represented approximately 5% of both our Net Book Value and lease rental revenue. Although our direct exposure to the region is limited and diversified across lessees and aircraft types, the effects of the conflict, particularly higher fuel costs, have adversely affected, and may continue to adversely affect, airlines globally. We continue to monitor customers that are more financially sensitive to higher fuel costs, including those that have historically relied on fuel supplies from the Gulf region. A sustained deterioration in regional or broader economic conditions, including persistently elevated fuel prices, could adversely affect our business, financial condition and results of operations.