Flight Equipment Held for Lease, Net

12 Months Ended

Feb. 28, 2025

Property, Plant and Equipment [Abstract]

Flight Equipment Held for Lease, Net

Note 3. Flight Equipment Held for Lease, Net

The following table summarizes the activities for the Company’s flight equipment held for lease for the years ended February 28, 2025 and February 29, 2024:

	February 28/29,
	2025		2024
Beginning balance	$	6,940,502	$	6,567,606
Additions	1,670,063		1,264,369
Depreciation	(353,395)		(347,297)
Disposals and transfers to net investment in leases and held for sale	(601,331)		(492,818)
Impairments	(10,972)		(51,358)
Ending balance	$	7,644,867	$	6,940,502
Accumulated depreciation	$	2,163,084	$	2,328,354

Russian Aircraft Insurance Settlements

The Company leased 9 aircraft to Russian airlines that were unrecoverable following Russia’s invasion of Ukraine in February 2022. The Company filed claims against the reinsurers of the Russian airlines’ insurance and the Company’s contingent and possessed insurance policies (“C&P Policies”) seeking indemnity.

During the fourth quarter of fiscal year 2024, the Company received cash proceeds of $49.5 million in settlement of the Company’s claims against certain of the insurers under its C&P Policies. The settlement proceeds were recorded as a component of other income for the year ended February 28, 2025. The receipt of the insurance proceeds serve to mitigate in part, the Company’s losses under its aviation insurance policies. We remain in settlement discussions with some of the remaining insurers under our C&P Policies. However, the collection, timing and amount of any future recoveries, including those related to insurance litigation, remain uncertain. Accordingly, at this time, the Company can give no assurance as to when or what amounts it may ultimately collect with respect to these matters.

During the year ended February 29, 2024, the Company received cash settlement proceeds of $43.2 million in settlement of the Company’s claims under the insurance policies of Joint Stock Company Aurora Airlines and Joint Stock Company Rossiya Airlines (collectively, the “Airlines”) in respect of 4 aircraft (collectively, the “Aircraft”) formerly on lease to the Airlines, which has been recorded within gain on sale or disposition of flight equipment. The settlement resolves claims against the Airlines, their respective insurers, and transfers the Aircraft title to a Russian insurer.