Inability to Recover Leased Aircraft and Impairment Losses Due to Economic Sanctions Against Russia
First written in FY2023-Q1. 4 of 8 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026.
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- FY2026MitigatedAnnual report
「During the consolidated fiscal year, we reached settlements with all war-risk insurance underwriters involved in the litigation, received total insurance settlement proceeds of US$551 million, and recorded the equivalent amount in yen as extraordinary income.」
For losses related to aircraft leased to Russian airlines, loans and loan guarantees, settlements were reached with all war-risk insurers, and the company received US$551 million, equivalent to ¥82.440 billion, in insurance settlement proceeds. - FY2026-H1MitigatedAnnual report
「During the current interim consolidated accounting period, we reached settlements with some insurers, received insurance settlement proceeds totaling US$506 million, and recognized the equivalent amount in yen as extraordinary income.」
For losses related to aircraft leased to Russian airlines and loans and loan guarantees, the company received US$506 million in insurance settlement proceeds following settlements with some insurers and recognized ¥75.149 billion in extraordinary income. - FY2023Recognized ¥74.8 billion in Russia-related losses for the full yearAnnual report
「In response to this situation, we recognized a total of ¥74.8 billion as “Russia-related losses” within extraordinary losses, comprising an impairment loss of ¥45.8 billion on the aircraft and credit losses of ¥29.0 billion on the loans and loan guarantees.」
Regarding Russia-related risks, the company recognized full-year impairment losses of ¥45.8 billion on aircraft and credit losses of ¥29.0 billion on loans and loan guarantees. - FY2023-Q3WorsenedAnnual report
「In response to this situation, the Group recognized a total of ¥77.1 billion in Russia-related losses in extraordinary losses, comprising an impairment loss of ¥48.9 billion on the aircraft and bad-debt losses of ¥28.2 billion on the loans and loan guarantees.」
Regarding Russia-related risks, the company incurred an impairment loss of ¥48.9 billion on 8 aircraft under terminated leases and ¥28.2 billion in credit losses on loans and loan guarantees to Russian airlines, bringing total losses to ¥77.1 billion. The nature and scale of the losses expanded from the ¥47.0 billion impairment loss on aircraft in the previous quarter. - FY2023-Q2WorsenedAnnual report
「The Group's consolidated subsidiary Aviation Capital Group LLC complied with economic sanctions imposed on Russia by the United States, the European Union (EU) and others in response to the invasion of Ukraine and terminated all aircraft leases to Russian airlines. However, Russia's retaliatory economic sanctions have made it difficult to estimate future cash flows for the aircraft under the terminated leases. In response to this situation, the Group recognized an impairment loss of ¥47.0 billion on the aircraft in extraordinary losses.」
With the lack of prospects for recovering aircraft leased to Russian airlines and for their future cash flows continuing, the impairment loss increased from ¥44.4 billion in the previous quarter to ¥47.0 billion. - FY2023-Q1MaterialisedAnnual report
「Our consolidated subsidiary Aviation Capital Group LLC terminated all aircraft leases to Russian airlines in compliance with the economic sanctions imposed on Russia by the United States, the European Union (EU) and others following the invasion of Ukraine. However, due to Russian countermeasures in response to the economic sanctions, there is still no prospect of recovering the aircraft under the terminated leases. In response, the Group recognized an impairment loss of ¥44.4 billion on the aircraft as an extraordinary loss.」
With no prospect of recovering 8 aircraft leased to Russian airlines, the company recognized an impairment loss of ¥44.4 billion, representing their carrying value, as an extraordinary loss.