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

[Courtesy: AerCap]
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Key Takeaways:

  • AerCap reported a $2 billion net loss in Q1 2022, primarily due to $2.7 billion worth of aircraft and engines unrecoverable from Russia following international sanctions.
  • The company has filed $3.5 billion in insurance claims for these lost assets, though the timing and amount of any recoveries remain uncertain.
  • Despite the significant impact from Russia, AerCap's underlying business performed strongly due to a global resurgence in travel demand, leading to increased revenue and cash flow for the quarter.
  • CEO Aengus Kelly expressed optimism about continued travel recovery and projected strong full-year earnings, which contributed to a nearly 7% rise in AerCap's share price post-announcement.
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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

Michael Wildes

Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.

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