Commercial aircraft lessor FLY Leasing announced Q1/14 net income of $3.6 million compared to net income of $32.8 million a year earlier. FLY said Q1/13 results benefitted from $30.6 million of end of lease income and $6.5 million in gains from aircraft sales. First quarter 2014 results were impacted by increases in interest expense as a result of FLY’s unsecured debt issuance last December, with much of the proceeds still unused.

Operating lease rental revenue increased 13% to $90.5 million. End of lease revenues were $3.7 million in Q1/14 compared to $30.6 million of end of lease revenue recognized in the same period in the previous year.

“Our first quarter revenue growth met our targets, principally due to our larger fleet and achieving 100% utilization during the quarter,” said Colm Barrington, CEO of FLY. “We had less end of lease revenue than in the prior year and also experienced increased interest costs resulting from the $300 million unsecured debt issuance which closed in December. However, we fully expect earnings to increase as we utilize this new capital and continue growing our fleet. The airline, aircraft leasing and aircraft financing markets remain healthy and FLY will take advantage of opportunities in these markets to increase shareholder value, including by maintaining our industry-leading dividend.”