Aircraft leasing firm Avolon recorded a first quarter loss of $182m as a result of its inability to reclaim aircraft it owns that were in Russia when it invaded Ukraine.
The company said it took a $304m impairment charge because of the issue, reducing the value of the 10 aircraft it owns that are in the country to zero.
It said that the impairment was partly offset by the net release of $43 million in other lease associated balances, resulting in a $261 million net impact to its income statement.
"As we reflect on our performance during the quarter, first and foremost our minds are with the people of Ukraine and those – both at home and abroad – that are impacted at this time. We are hopeful for a swift and peaceful end to the conflict," said CEO, Domhnal Slattery.
"Given the impact of sanctions, we are recognising an impairment charge of $304 million in the first quarter in relation to our aircraft which were previously on lease in Russia."
"While we continue to make every effort to recover these assets and are pleased to have repossessed four aircraft, we are recognizing the full impairment this quarter, putting the financial impact of Russian sanctions firmly behind us."
When the effect of the write-down is excluded, the Dublin based company had an adjusted net income of $80m for the for the three-month period.
In total the business had lease revenue of $658m during the quarter, up $188m compared to the same period in 2021.
The value of its assets dropped by $463m to $30.521bn.
Avolon owns and manages a fleet of 592 aircraft and has total orders and commitments for 240 new aircraft.
During the period it delivered a total of six new aircraft to four customers and transitioned 11 aircraft to follow-on lessees.
It also executed commitments for the sale and leaseback of 16 aircraft.
"Despite the headwinds of COVID-19 and Russian sanctions, we delivered our strongest quarterly underlying performance since the onset of the pandemic," said Mr Slattery.
"Our improved year-on-year performance was largely driven by the rapid reopening of borders in Asia and increased flying globally, which supported a further improvement in the financial health of our customers and resulted in increased cash collection rates."
"This performance re-affirms the inherent strengths of our business and the absolute resilience of the aircraft leasing model, providing us with confidence in the outlook for the remainder of the year."