AerCap has announced a significant legal victory in the Commercial Court in London. In a judgment delivered on June 11, the court found that AerCap’s subsidiary, AerCap Ireland Limited, is entitled to an indemnity payment of approximately US$1 billion. This sum is to be recovered from insurers under the “War and Allied Perils” coverage section of its contingent and possessed insurance policy.
The indemnity relates to aircraft and engines previously leased by AerCap and its affiliates to Russian airlines. These assets were not recovered following Russia’s invasion of Ukraine in February 2022. The court has ruled that the indemnity is to be paid by July 2, 2025. Matters concerning interest and legal costs have been deferred to a separate hearing, expected to take place in September 2025.
In 2022, AerCap reported a pre-tax net charge of US$2.7 billion, reflecting a total write-off of assets that remained in Russia and Ukraine, along with impairment losses on recovered equipment. Since then, the company has secured recoveries amounting to US$1.3 billion in 2023 and a further US$195 million in 2024. With the addition of this latest award, AerCap’s total pre-tax recoveries related to the Ukraine conflict will reach approximately US$2.5 billion.
Claims against insurers and reinsurers of Russian airlines concerning a number of these assets are still ongoing in the Commercial Court in London. AerCap has stated its firm intention to pursue these proceedings vigorously, though it acknowledged that the timing, collectability, and final amounts of any further recoveries remain uncertain.