AerCap CEO Foresees No Quick Return to Russia
February 26, 2025 (Reuters) – Aengus Kelly, the CEO of AerCap, the world’s largest aircraft leasing company, doesn’t anticipate a swift return to business in Russia even if markets reopen. Speaking on Wednesday, Kelly indicated that Russia might turn to purchasing used aircraft or engines if the market conditions ever allow it to. However, he doesn’t see Western lessors rushing to resume renting jets.
Talks regarding a potential ceasefire in Ukraine have raised the possibility of a gradual reopening of Russia to Western companies. However, the leasing industry remains significantly impacted. After Moscow’s 2022 invasion of Ukraine, approximately 400 jets were confiscated.
Kelly highlighted that any business activities with Russia would require approval from the United States and the European Union, given the ongoing war-related economic sanctions. “Now, let’s say that occurs, then you’ll need insurance. I just don’t see insurance occurring, so that means leasing would be a very long putt,” Kelly said.
“However, sales are different. Could sales be done with individual asset approval? Possibly. It would be a long putt, but there’ll be a big surge in demand to buy used assets.”
Kelly also noted that Western repair companies would likely be hesitant to service aircraft that have been operating in Russia without the necessary paperwork or approved parts. This reluctance would complicate the trading of parts, even if sanctions were lifted.
“I think the real demand will come from discrete assets, like a whole engine or an aircraft. I think it will be difficult to say that an aircraft that has been in Russia has any intrinsic value,” Kelly added.
Aircraft lessors are currently involved in lawsuits against numerous insurers, seeking to recover at least $8 billion in losses tied to aircraft stranded in Russia. AerCap reported that settlements totaling $168 million were booked in the fourth quarter. When questioned about potential further agreements, Kelly declined to comment.
AerCap’s net income for 2024 was slightly lower, at $2.34 billion. However, earnings per share increased by 12% to $12.01.
