AerCap (NYSE:AER) shares are soaring higher today after the global aircraft lessor received $645 million in insurance settlement proceeds for its claims under Aeroflot Group’s insurance policies. The claims were related to 17 aircraft and five engines used by Aeroflot- Russian Airlines and Rossiya Airlines.
These aircraft and engines were stranded in Russia when its conflict with Ukraine began last year. After receiving the insurance proceeds, AerCap has released its claims against NSK (a Russian insurance company), Aeroflot, Rossiya, and their international insurers.
Furthermore, the total claim amount of AerCap’s contingent and possessed insurance policy related to these aircraft and engines has now been lowered to $2.75 billion. The company is also engaged in ongoing insurance settlement talks for its insurance policies with multiple other Russian airlines. However, uncertainty remains about whether these discussions will materialize in any settlement and in what amount.
Overall, the Street has a consensus price target of $80.50 on AerCap, alongside a Strong Buy consensus rating. AerCap shares have steadily climbed 38% over the past year, even as the Russia-Ukraine conflict continues to rage on.
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