Stock market today: S&P 500 ends flat on fresh trade war worries
DUBLIN - AerCap Holdings N.V. (NYSE: AER), the $20.63 billion market cap aviation leasing giant currently trading near its 52-week high with an impressive 21.13% year-to-date return, has secured a favorable ruling from the Commercial Court in London entitling its subsidiary to recover approximately $1 billion from insurers under its "War and Allied Perils" insurance policy, according to a press release statement issued Wednesday.
The judgment relates to aircraft and engines formerly leased to Russian airlines that were not recovered following Russia’s invasion of Ukraine in February 2022. The court-ordered indemnity payment is due by July 2, 2025, with interest and costs to be determined at a hearing scheduled for September 2025. According to InvestingPro analysis, AerCap maintains strong financial health with impressive gross profit margins of 58.43% and trades at an attractive P/E ratio of 10.02.
This $1 billion award follows previous recoveries of $1.3 billion in 2023 and $195 million in 2024, bringing AerCap’s total pre-tax recoveries related to the Ukraine conflict to approximately $2.5 billion. The company had initially recognized a $2.7 billion pre-tax net charge to earnings in 2022 for assets that remained in Russia and Ukraine.
AerCap continues to pursue additional claims against insurers and reinsurers of Russian airlines’ insurance policies in the Commercial Court in London, though the company noted that "the collection, timing and amount of any potential further recoveries in respect of those claims are uncertain."
The Dublin-based aviation leasing company serves approximately 300 customers globally and is listed on the New York Stock Exchange.
In other recent news, AerCap Holdings N.V. reported robust first-quarter earnings that exceeded analyst expectations. The company announced adjusted earnings per share of $3.68 for Q1 2025, surpassing the analyst consensus estimate of $2.74. Revenue also exceeded forecasts, reaching $2.08 billion compared to the expected $2.01 billion. This revenue represents a 3% year-over-year increase, driven by a 4% rise in basic lease rents to $1.65 billion. Net income rose to $643 million, or $3.48 per share, up from $604 million, or $3.02 per share, in Q1 2024. AerCap has adjusted its full-year 2025 EPS guidance upward to a range of $9.30 to $10.30. Additionally, the company announced a new $500 million share repurchase program. AerCap’s fleet statistics include an average age of 7.5 years and an average remaining lease term of 7.3 years, with an adjusted debt/equity ratio of 2.4 to 1.
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