© Reuters. Avolon logo is seen in this illustration taken, May 1, 2022. REUTERS/Dado Ruvic/Illustration
DUBLIN (Reuters) – Major aircraft lessor Avolon recorded a first-quarter impairment of $304 million to cover the full financial impact of having 10 jets stuck in Russia following European Union sanctions that forced the termination of all Russian leases.
The Irish company said on Tuesday that while it continues to make every effort to recover the planes having repossessed four aircraft before the sanctions deadline, it reduced the carrying value of the remaining aircraft to zero.
As a result of the impairment, Avolon reported a net loss of $182 million for the quarter but said it delivered its strongest quarterly underlying performance since the onset of the COVID-19 pandemic two years ago.