AerCap Holdings N.V. has secured a major legal victory in London’s Commercial Court, which ruled that its subsidiary, AerCap Ireland Limited, is entitled to a $1 billion insurance indemnity under its “War and Allied Perils” coverage. The claim relates to aircraft and engines leased to Russian airlines that were not recovered following Russia’s invasion of Ukraine in early 2022.
Key Points:
- $1 billion indemnity to be paid by 2 July 2025
- Covers aircraft and engines stranded in Russia post-invasion
- Interest and legal costs to be addressed in a September 2025 hearing
Recovery Timeline:
- 2022: AerCap recorded a $2.7 billion pre-tax net charge due to asset losses in Russia and Ukraine.
- 2023: Recovered $1.3 billion
- 2024: Recovered an additional $195 million
- 2025: With this ruling, total pre-tax recoveries now reach $2.5 billion
Ongoing Legal Efforts:
AerCap continues to pursue additional claims against insurers and reinsurers of the Russian airlines’ policies in the Commercial Court. While committed to these efforts, the company notes that the timing and outcome of further recoveries remain uncertain.
This marks one of the largest war-related aviation insurance payouts stemming from the Russia–Ukraine conflict and reinforces AerCap’s determination to recoup losses through legal means.