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Finance

China's BOC Aviation warns of net loss as planes stranded in Russia

State-owned lessor writes down over $800m as recovery of aircraft 'unlikely'

Aircraft lessor BOC Aviation is writing off 17 airplanes leased to Russian carriers due to the "unlikely" chance of recovering them anytime soon.   © Reuters

HONG KONG -- China's state-owned BOC Aviation is expecting to slip into a net loss of at least $310 million for the first six months of the year, affected by a substantial write down in its Russia business.

The Hong Kong-listed unit of Bank of China said in a filing on Sunday evening that it has decided to cut the net book value of 17 leased aircraft remaining under control of Russian airlines to zero from $803.6 million. The company believes "it is unlikely to be able to recover those aircraft from Russia in the foreseeable future, if ever." It has recovered only one from the country so far since the start of the war in Ukraine.

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