Air Lease Stock Rallies On $328M Insurance Settlement Proceeds: Retail’s On Wait-And-Watch Mode
The company and some of its subsidiaries had submitted insurance claims and commenced litigation against insurers to recover losses relating to aircraft detained in Russia.
FollowShares of Air Lease Corp (AL) rallied over 4% on Monday after the company disclosed it received an aggregate of $328.5 million in cash insurance settlement proceeds.
The amount will be recorded as an insurance recovery in its financial statements for the first quarter (Q1) of 2025.
The company and some of its subsidiaries had submitted insurance claims and had commenced litigation against the insurers on the contingent and possessed insurance (C&P) policy.
This was to recover losses relating to aircraft detained in Russia.
The settlement comes after the company entered settlement agreements with certain contingent and possessed insurance policy (C&P) insurers. Air Lease said its litigation against most C&P insurers is still in progress.
To date, Air Lease has recovered an aggregate of $424.3 million against the initial $791 million write-off of its interests in owned aircraft detained in Russia taken during the first quarter of 2022.
Last month, the company announced long-term lease agreements with Qanot Sharq Airlines for five new Airbus A321neo aircraft, including three A321-200neo XLRs and two A321-200neo LRs.
The company announced that the aircraft will be delivered to the Uzbek airline in 2026 and 2027 from Air Lease’s orderbook with Airbus.
The company has been in the news lately after it announced that Executive Chairman Steven Udvar-Házy will retire on May 2, 2025, following the 2025 Annual Meeting of Stockholders.
Udvar-Házy will continue to serve on the Board as non-executive Chairman until the 2026 annual meeting of stockholders.
Meanwhile, on Stocktwits, retail sentiment continued to trend in the ‘neutral’ territory (50/100) despite the positive news.
AL’s Sentiment Meter and Message Volume as of 10:58 a.m. ET on March 24, 2025 | Source: Stocktwits
AL shares have gained nearly 2% in 2025 and are up 0.06% in the past 12 months.
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