Dublin-based aircraft leasing company Avolon has recorded an impairment of $304 million related to 10 planes still stuck in Russia following international sanction imposed after the invasion of Ukriane.  

In its latest financial report released on May 3, 2022, Avolon announced having managed to generate $320 million of net cash from operating activities and delivering $658 million of lease revenue in Q1 2022. The lessor noted that it ended the quarter with available liquidity reaching $5.4 billion.  

Avolon reduced the carrying value of these jets and ended Q1 with an impairment of $304 million, the financial report indicated. 

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“This impairment is partly offset by the net release of $43 million in other lease associated balances resulting in a $261 million net impact to the income statement,” the lessor wrote in the statement.  

“As a result of this impairment, Avolon is reporting a net loss of $182 million for the quarter, and an adjusted net income, excluding the impact of Russia of $80 million for the period,” the statement continued.  

However, despite the impact of COVID-19 lockdowns and sanctions placed on Russia, Avolon chief executive officer Dómhnal Slattery described the company’s Q1 financial results as “the strongest quarterly underlying performance since the onset of the pandemic”. 

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Air Lease Corporation (ALC) said it would write off the value of 27 aircraft that are still remaining in Russia.
 

“Given the impact of sanctions, we are recognizing an impairment charge of $304 million in the first quarter in relation to our aircraft which were previously on lease in Russia. While we continue to make every effort to recover these assets and are pleased to have repossessed four aircraft, we are recognizing the full impairment this quarter, putting the financial impact of Russian sanctions firmly behind us,” Slattery added.  

According to the report, Avolon has ended the quarter having secured a total of 142 airline customers across 61 countries. The lessor currently owns a fleet consisting of 592 jets and has secured orders and commitments for 240 aircraft. 

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Lessor Aircastle has written off the value of its aircraft still stranded in Russia.