AerCap Stock Gains After UK Court Allows Top Aircraft Lessor To Recover $1B For Jets Stuck In Russia

The company had booked a pre-tax net charge of $2.7 billion in 2022 related to the loss of assets.

AerCap Holdings (AER) stock rose 1.6% on Wednesday after a UK court ruled that the company can recover about $1 billion in damages due to losses on aircraft and other assets stuck in Russia since the Ukraine War.

According to a Reuters report, London High Court Judge Christopher Butcher said in a summary of his ruling that the aircraft were lost and “that loss occurred on 10 March 2022, when a piece of Russian legislation banned the export of aircraft and aircraft equipment from Russia”.

AerCap, the top aircraft lessor, had booked a pre-tax net charge of $2.7 billion in 2022 related to the loss of assets and impairment charges.

The company had already recovered $1.3 billion in 2023 and $195 million in 2024. Wednesday’s ruling will now bring its total recoveries to around $2.5 billion.

The lawsuit also involved other aircraft lessors, such as Dubai Aerospace Enterprise, Merx Aviation, and KDAC Aviation Finance, against insurers AIG, Lloyd's, Chubb, and Swiss Re.

Butcher said that aircraft lessors could recover under a "war risks policy," instead of the broader all-risks clause that the companies initially sought in what has been touted as one of the biggest legal battles in aviation.

The judge also ruled that sanctions from the U.S. and the UK do not prevent insurers from compensating the companies for their losses.

Retail sentiment on Stocktwits was in the ‘neutral’ (49/100) territory, while retail chatter was ‘low.’

Aercap stock has gained nearly 22% this year, as the tepid pace of new aircraft deliveries and strong travel demand in most parts of the world have brightened the outlook for lessors.

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