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Lessor SMBC takes $1.6 billion impairment on aircraft in Russia

By:
Reuters
Published: Jul 8, 2022, 08:07 GMT+00:00

DUBLIN (Reuters) - Aircraft lessor SMBC Aviation Capital on Friday recorded an impairment of $1.6 billion to cover the full financial impact of having 34 jets stuck in Russia after European Union sanctions that forced the termination of all Russian leases.

Illustration shows SMBC Aviation Capital logo displayed in front of the model of an airplane and a Russian flag

DUBLIN (Reuters) – Aircraft lessor SMBC Aviation Capital on Friday recorded an impairment of $1.6 billion to cover the full financial impact of having 34 jets stuck in Russia after European Union sanctions that forced the termination of all Russian leases.

Irish-headquartered SMBC, which is owned by a consortium including Japan’s Sumitomo Corp and Sumitomo Mitsui Financial Group, said it expects to make substantial recoveries from its significant insurance coverage.

(Reporting by Padraic Halpin; Editing by David Goodman)

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