AerCap has secured a settlement with one of the insurers related to aircraft stranded in Russia as a result of the Ukraine conflict, the company said in a filing on November 13, 2024.
The company was in discussions with insurers for up to $250 million of proceeds. The agreement under its insurance policy was for less than half of the amount.
The settlement decreases its total claims on the Ukraine conflict from $2.1bn down to $1.9bn. According TD Cowen analysts Moshe Orenbuch and Burc Okumus, the amount is likely to be $120 million.
“We believe AerCap will be able to recover a substantial portion of its Ukraine conflict claims through the judicial process, as demonstrated by today's settlement,” the analysts said. “The remaining $1.9bn in claims, equivalent to $1.6bn after tax, represents 9% of AerCap's current market cap."
AerCap had 135 aircraft and 14 engines leased to Russian airlines, valued at around $3.1bn, as of December 31, 2021. The company had recovered 22 aircraft and three engines outside of Russia. However, the remaining aircraft have since been stranded in Russia.