Flight equipment subject to operating lease

3 Months Ended

Mar. 31, 2025

Property, Plant and Equipment [Abstract]

Flight equipment subject to operating lease

The following table summarizes the activities for the Company’s flight equipment subject to operating lease for the three months ended March 31, 2025:


	(in thousands)
Net book value as of December 31, 2024	$	28,170,466
Purchase of flight equipment	830,016
Depreciation	(299,019)
Flight equipment subject to operating leases reclassified to flight equipment held for sale	(60,572)
Transfer of flight equipment to investment in sales-type lease	(33,778)
Net book value as of March 31, 2025	$	28,607,113

Accumulated depreciation as of March 31, 2025	$	(6,268,070)

Update on Russian Fleet

In June 2022, the Company and certain of its subsidiaries (collectively, the “Plaintiffs”) submitted insurance claims to the insurers (collectively, the “C&P Insurers”) on the Plaintiffs’ contingent and possessed insurance policy (“C&P Policy”) to recover losses relating to aircraft detained in Russia for which the Company recorded a net write-off of its interests in its owned and managed aircraft totaling approximately $771.5 million for the year ended December 31, 2022. On December 20, 2022, the Plaintiffs filed suit in the Los Angeles County Superior Court of the State of California against the C&P Insurers in connection with their previously submitted insurance claims (the “California Litigation”).

On January 19, 2024, certain of the Plaintiffs filed suit in the High Court of Justice, Business & Property Courts of England & Wales, Commercial Court against the Russian airlines’ aviation insurers and reinsurance insurers (collectively, the “Airlines’ Insurers”) seeking recovery under the Russian airlines’ insurance policies for certain aircraft that remain in Russia (the “London Litigation”). The London Litigation remains in the early stages and no trial date has been set.

During the first quarter of 2025, the Plaintiffs entered into settlement agreements with certain C&P Insurers. As a result, during the three months ended March 31, 2025, the Company received an aggregate of $328.5 million in cash insurance settlement proceeds recognized under Recoveries of Russian fleet write-off in its consolidated statement of income and comprehensive income.

Subsequent to March 31, 2025, the Company entered into settlement agreements with certain additional C&P Insurers and received an aggregate of $226.7 million in cash insurance settlement proceeds, which will be recognized under Recoveries of Russian fleet write-off in its consolidated statement of income and comprehensive income in the second quarter of 2025. Pursuant to the terms of the settlement agreements and following receipt of these proceeds, the Plaintiffs (i) released their insurance claims against the settling C&P Insurers under the C&P Policy in the California Litigation, (ii) released their insurance claims against the settling C&P Insurers under the reinsurance policies at issue in the London Litigation, and (iii) dismissed, or are in the process of dismissing, the settling C&P Insurers from the California Litigation and London Litigation.

As of May 5, 2025, the Company has recovered an aggregate of $651.0 million against its initial $791.0 million write-off of its interests in owned aircraft detained in Russia taken during the first quarter of 2022, comprised of $555.3 million in cash insurance settlement proceeds received from settling C&P Insurers, $64.9 million in cash insurance settlement proceeds received in December 2023 under Russian airline S7’s insurance policies in respect of four aircraft in the Company’s owned fleet on lease to S7 at the time of Russia’s invasion of Ukraine, and a $30.9 million benefit recorded from the October 2022 return of one Boeing 737-8 MAX aircraft that was not operating and had been in storage in Russia since the 737 MAX grounding.

The Plaintiffs continue to have significant claims against non-settling C&P Insurers and certain Airlines’ Insurers and will continue to vigorously pursue all available insurance claims and related insurance litigation, and all rights and remedies therein. The

Plaintiffs are currently in settlement discussions with certain non-settling C&P Insurers. Collection, timing and amounts of any additional insurance and related recoveries in the California Litigation and London Litigation remain uncertain at this time.