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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, primarily due to $2.7 billion worth of aircraft and engines lost in Russia following international sanctions, for which the company has filed $3.5 billion in insurance claims.
  • Despite the Russia-related losses, AerCap experienced a strong underlying quarter driven by a global resurgence in travel demand, increased lease transactions, and the integration of the GECAS business, leading to significantly higher revenue and cash flow.
  • The company maintains an optimistic outlook for the full year, projecting strong earnings per share and operating cash flow, with investors responding positively and AerCap's share price rising post-report.
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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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