SMBC Aviation Capital, one of the world’s leading aircraft leasing firms, has secured an additional $654 million in insurance compensation over the last 12 months tied to aircraft stranded in Russia. These settlements relate to the aftermath of Western sanctions imposed on Moscow in response to its invasion of Ukraine.

The Dublin-based lessor, which is ranked as the third-largest globally in the aircraft leasing sector, disclosed the latest figures in its full-year financial results for the fiscal year ending March 2025. The new settlements bring the total recovered from insurers to approximately $1.41 billion, stemming from claims related to aircraft stuck in Russia.

The situation dates back to 2022 when SMBC, along with other global lessors, was forced to cancel leasing agreements with Russian airlines after sanctions made it illegal to do business with the country’s aviation sector. As a result, SMBC lost access to 34 aircraft still on lease to Russian operators. To account for the potential financial loss, the company recorded a $1.6 billion impairment that year, reflecting the full expected hit to its balance sheet.

In May 2025, SMBC was among six leasing companies that decided to drop legal action in Ireland against their insurance providers. This came after a series of successful negotiations led to large settlement agreements, resolving a legal impasse that had been ongoing for more than a year.

Despite the challenges posed by the Russian aircraft issue, SMBC reported a strong year financially. Its pre-tax profit surged by 22% year-over-year, reaching a record $563 million—a figure that excludes the benefit from the insurance-related payouts.

The company also highlighted growth in its core leasing business, with lease rental income rising 3% to $2 billion. In addition, SMBC generated $1.9 billion from asset sales, fueled by the sale of 48 aging aircraft as part of its fleet optimization strategy.

SMBC Aviation Capital is majority-owned by a Japanese investor consortium that includes Sumitomo Corporation and Sumitomo Mitsui Financial Group, both major players in global finance and infrastructure.

These latest financial results and settlements not only reflect SMBC’s resilience in navigating geopolitical and operational risks but also reinforce its status as a major player in the aviation leasing market, with a diversified portfolio and a strong recovery strategy.