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ILFC Reports Positive Earnings for Q3 2012

November 05, 2012, 07:10 AM
Filed Under: Aircraft

American International Group reported net income attributable to AIG of $1.9 billion and after-tax operating income of $1.6 billion for the quarter ended September 30, 2012, compared to a net loss attributable to AIG of $4.0 billion and an after-tax operating loss of $3.0 billion for the third quarter of 2011.

Aircraft Leasing

International Lease Finance Corporation (ILFC) reported third quarter 2012 operating income of $39 million, compared to an operating loss of $1.3 billion in the third quarter of 2011, which included $1.5 billion of impairment charges and  fair value adjustments. ILFC recognized impairment charges of $98 million in the third quarter of 2012.

During the third quarter of 2012, ILFC recorded rental revenues of $1.1 billion, essentially flat compared to the third quarter of 2011. The decline in rental revenues is due to the re-lease of older aircraft at lower rates and the impact of a higher level of aircraft repossessed early, partially offset by a limited number of new aircraft deliveries and revenues from AeroTurbine, which was acquired by ILFC in the fourth quarter of 2011.

ILFC raised approximately $750 million during the third quarter of 2012 for general corporate purposes, including the repayment of existing indebtedness and the purchase of aircraft, through the issuance of 5.875% unsecured notes due 2022. Further, on October 9, 2012, ILFC entered into a $2.3 billion unsecured three-year revolving credit facility with a group of 10 banks and terminated its existing $2.0 billion revolving credit agreement originally scheduled to expire in 2014.

Read the full American International Group earnings press release.

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