Russia-Ukraine Conflict Helps Send AerCap to $2 Billion Loss in Q1

Michael Wildes

Tuesday, May 17, 2022 at 04:23 PM ET

Verified

[Courtesy: AerCap]

Key Takeaways:

AerCap reported a $2 billion net loss in Q1, primarily due to $2.7 billion in unrecoverable aircraft and engines (135 planes, 14 engines) leased to Russian airlines following sanctions related to the Russia-Ukraine conflict.
The company has filed $3.5 billion in insurance claims for these lost assets, acknowledging that the timing and amount of any recovery are uncertain.
Despite the significant losses from Russia, AerCap's underlying business performed strongly in Q1, driven by a global resurgence in travel demand, leading to increased revenue and transactions.
AerCap's CEO expressed optimism for continued travel demand growth and strong full-year financial performance, viewing the Russia-related setback as manageable, though he noted concerns about aircraft and helicopter supply from manufacturers.

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AerCap Holdings N.V. (NYSE: AER), the world’s largest aircraft leasing company, reported a $2 billion first-quarter net loss on Tuesday.

The Dublin, Ireland-based company attributed much of that loss to the aircraft and equipment it lost as a result of the Russia-Ukraine conflict. In a statement, the company explained that approximately 5 percent of its fleet by book value—135 aircraft and 14 engines—were leased to Russian airlines when governments imposed sanctions on Russia.