Global lessor AerCap has been awarded a billion-dollar payout by a UK court after the company lost scores of aircraft in Russia following its invasion of Ukraine.
On June 11, 2025, at the Commercial Court in London, Mr. Justice Butcher ruled that AerCap was entitled to recover its claim for an indemnity of approximately $1 billion from insurers for the lost aircraft.
AerCap’s claim was brought in respect of 116 aircraft and 15 standalone engines. AerCap’s losses, net of settlement amounts already received, were $2 billion.
Mr. Justice Butcher said AerCap could claim the awarded sum from insurers under the “War and Allied Perils” coverage section of its insurance policy.
Mr. Justice Butcher also ruled that Dubai Aerospace Enterprise (DAE), Merx Aviation, KDAC Aviation Finance, Falcon and Genesis could “recover in respect of its lost Aircraft and engines under the Contingent Cover of its policies”.
The court accepted that the aircraft had been “lost” by Russia seizing them before Western sanctions ordered lessors to cancel contracts with Russian operators by March 28, 2022.
An export ban on aircraft and aircraft equipment from Russia was brought into effect by the Russian government on March 10, 2022.
To conclude, Mr. Justice Butcher said: “I wish to thank the representatives of all parties for the degree of cooperation and expertise shown in the preparation and presentation of what, by any standards, was an unusually demanding piece of litigation.”
In total the trial related to 147 aircraft and 16 standalone engines with the six lessors initially claiming over $4 billion in payments.
“In 2022, we recognized a pre-tax net charge of $2.7 billion to our earnings, which included a total loss write-off with respect to the assets which remained in Russia and Ukraine and impairment losses with respect to the assets which we had recovered from Russia and Ukraine at that time,” AerCap said in a statement.
The company added: “Following recoveries of $1.3 billion in 2023 and $195 million in 2024, this indemnity award will bring AerCap’s total pre-tax recoveries relating to the Ukraine conflict to approximately $2.5 billion.”
Several claims against insurers by AerCap over other assets linked to Russian airlines remaining ongoing in the Commercial Court.
“We intend to continue to vigorously pursue those claims,” said AerCap.
You can read the judgement in full on the Courts and Tribunals Judiciary website.
