American International Group, Inc. reported a net loss attributable to AIG of $4.1 billion and an after-tax operating loss of $3.0 billion for the quarter ended September 30, 2011, compared with a net loss of $2.5 billion and an after-tax operating loss of $114 million for the third quarter of 2010.

ILFC reported a third quarter operating loss of $1.3 billion, compared to an operating loss of $218 million in the third quarter of 2010. The current quarter’s results were adversely impacted by $1.5 billion of impairment charges resulting from IOLFC’s annual review of its aircraft fleet.  This review considered developments that were identified in the third quarter of 2011, including the growing impact of new technology aircraft on current and future demand for mid-generation aircraft; the impact of fuel price volatility and higher average fuel prices; high production rates sustained by manufacturers for new generation, more fuel-efficient aircraft; the unfavorable impact of low rates of inflation on aircraft values; current market conditions and future industry outlook for marketing of older mid-generation and out-of-production aircraft; and the decreasing number of operators and lessees for older generation aircraft.

During the third quarter of 2011, ILFC recorded rental revenues of $1.1 billion, essentially flat over last year. For the three-month period ended September 30, 2011, ILFC had an average of 934 aircraft in its fleet, compared to 943 in the third quarter of 2010. During 2011, ILFC entered into a contract for the purchase of 100 A320neo family narrow body aircraft from Airbus, with deliveries beginning in 2015. ILFC also has the right to purchase an additional 50 Airbus A320neo family narrow body aircraft. In addition, ILFC signed a purchase agreement for 33 737-800 aircraft from Boeing, with deliveries beginning in 2012.

Robert H. Benmosche, AIG President and Chief Executive Officer stated "We also took significant impairments at ILFC, reflecting management's decision on certain aircraft that would be disposed of prior to the end of their previously estimated life in light of technological developments in the aircraft industry, fleet management announcements by certain airlines, and our newly acquired part-out company."