Lessor AerCap books $2.7 billion charge on stranded Russian jets

[May 17, 2022]  (Reuters) -AerCap Holdings NV said on Tuesday it booked a pretax charge of $2.7 billion in the first quarter as more than 100 jets of the world's top aircraft lessor remain stranded in Russia.

The announcement comes less than two months after it submitted a $3.5 billion insurance claim for its jets stuck in Russia following its invasion of Ukraine.

Several other lessors with hundreds of jets stuck in Russia are bracing for a pursuit of insurance claims, while maintaining discreet contact with some customers after Moscow blocked the jets from leaving.

"We have filed insurance claims related to these assets and will vigorously pursue all available remedies to recover our losses," AerCap Chief Executive Officer Aengus Kelly said in a statement.

The charge comprised flight equipment write-offs and impairments, the Dublin-based lessor said.

AerCap said it removed 22 aircraft and three engines outside of Russia. However, it noted that 113 aircraft and 11 engines are still stuck in Russia.

(Reporting by Nathan Gomes in Bengaluru; Editing by Maju Samuel)

 

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