Dublin based SMBC Aviation Capital, the world’s third-largest aircraft lessor, aims to increase commercial deliveries this year, notwithstanding a recent downturn affecting its performance.SMBC has over 250 planes on order with both manufacturers.
SMBC has reported a 22pc increase in pretax profits to $563m, as it continues to address the impact of insurance settlements related to aircraft stranded due to sanctions.
SMBC reported a further $654m from insurance settlements over the last year related to aircraft stranded in Russia following Western sanctions. This brings its total recoveries from claims to $1.41bn.
SMBC recorded an impairment of $1.6bn in 2022 after 34 aircraft got stuck in Russia following the sanctions over Moscow’s war in Ukraine that led to the termination of leases.
SMBC reiterated concerns about tariffs affecting recovery in aircraft production.The 737 MAX production at Boeing is expected to stabilise in the upcoming weeks amid previous challenges.
Boeing and Airbus are advancing in aircraft manufacturing with a focus on achieving a consistent production cycle.
SMBC, which was one of six lessors that ended an Irish lawsuit against their insurers last month, says the majority of its litigation around the world is now complete.
Peter Barrett shared “I was actually at Boeing a few weeks ago. I certainly felt that the corner was turned and I don’t say that lightly. There’s more to go but I do think they are absolutely travelling in the right direction. There was some caution on transatlantic routes, but that SMBC’s customers have said domestic US demand was resilient.”
