(Bloomberg) -- Avolon Holdings Ltd. has written down the full value of 10 planes stuck in Russia as aircraft lessors begin to tally losses following sanctions imposed after the invasion of Ukraine.
The Dublin-based company recognized an impairment of $304 million on its exposure to Russia, according to a statement Tuesday. That contributed to a net loss of $182 million in the three months through March.
The move enables Avolon to “put the financial impact of Russian sanctions firmly behind us,” said Chief Executive Officer Domhnal Slattery. Nevertheless, “we continue to make every effort to recover these assets and are pleased to have repossessed four aircraft,” he added.
Aircraft lessors have been caught up in the international response to Russia's invasion, as the Kremlin has issued a law preventing foreign-owned planes from leaving the country without state permission. That blocks the repossession of planes as required by sanctions, stranding roughly 400 jets that had been leased to Russian companies.
Read More: Russia's Seizure of 400 Aircraft Sparks Epic Insurance Struggle
Avolon has far less exposure to the Russian market than rivals AerCap Holdings NV and SMBC Aviation Capital. AerCap, the world's largest aircraft-leasing firm, said in March that it's seeking about $3.5 billion from insurers related to 113 jets and 11 engines stuck in Russia.
Avolon, which has a large portion of its fleet leased to carriers in Asia, said it is seeing a rapid reopening of borders as countries unwind Covid-19 travel restrictions and airlines re-add capacity. Excluding the Russia impact, Avolon would have made a quarterly profit of $80 million, the company said.
Read More: Southeast Asia Travel Is Catching Up at Last as Covid Curbs Ease
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