AerCap received cash insurance settlement proceeds of $30m connected to a total loss of an aircraft. The first-quarter other income also included airline bankruptcy claim.
In February, AerCap disclosed that it had recognised $168m in insurance settlements for the fourth quarter of 2024, totalling $195m related to the Ukraine conflict.
It is pursuing £2.1bn in claims from London market reinsurers under its AIG-led hull all-risks policy, with a judgement expected by late 2025.
AerCap has become the first international lessor to publicly disclose an insurance settlement with insurers and airlines when it received a $645m payout from NSK in September 2023 to cover the loss of 17 aircraft previously on lease to Russian flag carrier Aeroflot.
Peter Juhas, Chief Financial Officer shared: During the quarter we received shares related to an airline bankruptcy claim and also received some insurance proceeds related to a total loss on an aircraft. The combined impact of both of those on other income was around $30m dollars. We sold 35 of our owned assets during the quarter for total sales revenue of $683m dollars. That resulted in an unlevered gain-on-sale margin of 35pc, which is equivalent to a multiple of 2.3x book value. As of March 31st, we had $525m dollars’ worth of assets held for sale.
The renewal rate on aircraft leases is at a historic high. Going back over a long time, it would have been 50pc odd. But over the last few years, it’s trended around 90pc odd. Now, this this quarter was a little bit lower than 90pc, but still extraordinarily high by historical standards. And that’s because we moved certain aircraft during the quarter, we decided not to extend. yes, if I look at the extension trends, it was 60pc in ’21, 65pc in ’22, 75pc in ’23, and 80pc in ’24.
