Lessor SMBC takes $1.6 billion impairment on aircraft in Russia

2022.07.08 11:50

FILE PHOTO: SMBC Aviation Capital logo is seen displayed in front of the model of an airplane and a Russian flag in this illustration taken, May 4, 2022. REUTERS/Dado Ruvic/Illustration

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 (NYSE:SMFG) Financial Group, said it expects to make substantial recoveries from its significant insurance coverage.

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