Air Lease recovers $112.4 million in insurance for aircraft detained in Russia

Published 01/07/2025, 21:46
Air Lease recovers $112.4 million in insurance for aircraft detained in Russia

Air Lease Corporation (NYSE:AL), an aircraft leasing company with a market capitalization of $6.55 billion, reported Tuesday that it has received $112.4 million in cash insurance proceeds as part of settlement agreements with certain insurers related to aircraft detained in Russia. According to InvestingPro data, the company maintains impressive gross profit margins of 58.5%, though it operates with a significant debt burden. The company stated that these proceeds will be recorded as an insurance recovery in its financial statements for the second quarter of 2025.

The latest settlement adds to $226.7 million in insurance proceeds previously received and disclosed in Air Lease’s quarterly report for the period ended March 31, 2025. In total, Air Lease has now recovered $763.5 million in insurance settlements against an initial write-off of $791.0 million taken in the first quarter of 2022, when it lost access to owned aircraft in Russia.

The settlements were reached in June 2025 with insurers under Air Lease’s contingent and possessed insurance policy. As a result, Air Lease and its subsidiaries have released their insurance claims against the settling insurers under the relevant policies and are dismissing these insurers from related litigation in both California and London.

Air Lease indicated that it expects to enter into a settlement agreement with the final war risk insurer under the same policy during the third quarter of 2025.

This information is based on a statement contained in the company’s Form 8-K filing with the Securities and Exchange Commission.

In other recent news, Air Lease Corporation reported robust financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.51, significantly higher than the projected $0.89, while total revenue reached $738 million, exceeding forecasts by $24.45 million. This strong performance was driven by increased rental revenues and gains from aircraft sales. Additionally, TD Cowen raised Air Lease’s stock price target to $55, maintaining a Buy rating, citing strong sales and earnings that outperformed estimates.

Citi also upgraded Air Lease’s stock from Neutral to Buy, raising the price target from $45 to $68, reflecting confidence in the company’s new capital allocation strategy. The strategy involves potential share buybacks and acquisitions, aligning with industry practices to enhance shareholder value. Despite the higher-than-expected expenses, including a $17 million retirement-related payout, analysts remain positive about Air Lease’s financial health and market position. The company anticipates $3-3.5 billion in new aircraft deliveries for 2025, with lease rates trending higher due to strong global demand for air travel.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.