AerCap receives Q1 insurance settlement for aircraft total loss
Dublin-based aircraft lessor AerCap said that it had received cash insurance settlement proceeds from insurers relating to the "total loss" of an aircraft.
Peter Juhas, AerCap's chief financial officer, told analysts on an earnings call that the insurance proceeds were received alongside payouts related to an airline bankruptcy claim.
The combined impact of both of those on AerCap's first-quarter other income was around $30m, he said. Juhas did not disclose the cause of the total loss of the aircraft.
AerCap, the world's largest aircraft lessor, disclosed in February that it recognised $168m in insurance settlements during the fourth quarter of 2024 relating to aircraft seized as a result of the war in Ukraine.
The fourth-quarter settlement took AerCap's total insurance and other recoveries related to the Ukraine conflict to $195m in 2024.
AerCap is currently pursuing London market reinsurers in the UK's High Court for $2.1 billion under its AIG-led hull all-risks policy. It has an alternative claim for £1.2 billion on its Atrium-led contingent war placement.
While settlement talks were ordered by the court last year, the case went to trial in October and concluded in early February. A judgment is expected in late 2025.
The lessor is separately pursuing claims worth a further $1.8 billion in the aggregate from international markets. These claims refer to so-called operator policies, which were taken out by airlines and carriers with domestic insurers and reinsured in the London market.
AerCap has received a number of settlements from insurers in relation to jets stranded as result of Russia's invasion of Ukraine. This includes the $23m recovered in H1 2024 relating to a Boeing 777-300ER retrieved from Ukraine.
AerCap became the first international lessor to publicly disclose an insurance settlement with insurers and airlines when it received a $645m payout from NSK in September 2023 to cover the loss of 17 aircraft previously on lease to Russian flag carrier Aeroflot.
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