AerCap has announced that in a judgment handed down on Wednesday, the Commercial Court in London found that its subsidiary, AerCap Ireland Limited, is entitled to recover its claim for an indemnity of approximately $1 billion from the insurers under the “War and Allied Perils” Coverage section of its contingent and possessed insurance policy. This award is in respect of the aircraft and engines that AerCap and its affiliates formerly leased to Russian airlines and were not recovered from Russia following its invasion of Ukraine in February 2022. The indemnity amount is due to be paid by 2nd of July, 2025. All questions of interest and costs are adjourned to a further hearing to be fixed in September 2025.
In 2022, AerCap recognised a pre-tax net charge of $2.7 billion to its earnings, which included a total loss write-off with respect to the assets which remained in Russia and Ukraine and impairment losses with respect to the assets which we had recovered from Russia and Ukraine at that time. Following recoveries of $1.3 billion in 2023 and $195 million in 2024, this indemnity award will bring AerCap’s total pre-tax recoveries relating to the Ukraine conflict to approximately $2.5 billion.
The claims against insurers and reinsurers of the Russian airlines’ insurance policies in respect of a number of these assets remain ongoing in the Commercial Court in London and AerCap intend to continue to vigorously pursue those claims. However, the collection, timing, and amount of any potential further recoveries in respect of those claims are uncertain.
