During the first quarter of 2022, the Dubai aircraft leasing company DAE took a $537.9 million write-off on aircraft operating in Russian airline fleets. According to DAE, these aircraft with Russian carriers are “no longer within the company’s control.”
“We wrote off our net investment to handle the loss of control of our aircraft on lease to airlines in Russia,” said Firoz Tarapore, CEO of DAE. “Under certain insurance policies, we have filed claims totalling $1 billion and expect to file additional claims to recover amounts owed to us.”
DAE (Dubai Aerospace Enterprise) reported revenues of $298 million in the first three months, down from $307.5 million the previous year, resulting in an adjusted net income of $46.6 million. DAE lost $491.3 million after exceptional items, compared to a profit of $8.3 million a year ago. The asset write-off from the Russia exposure caused total assets to drop to $11.64 million from $12.60 billion during the quarter.
“Our first-quarter financial results illustrate the underlying strength of DAE’s franchise, as well as the continued demand-led recovery of global air travel,” stated the CEO. “We’re seeing a return to normalcy in air travel, with all key indicators pointing to a solid summer season for our airline clients.”
While DAE reported lower revenue from aircraft leases in the first three months, this was offset by higher gains from aircraft disposals. “DAE Engineering had another excellent quarter,” Tarapore added, “with its Joramco division earning record revenue and adding and renewing a number of big maintenance agreements, including with GetJet Airlines, DHL, Ryanair, and Corendon Airlines in the quarter.”
