ILFC reverses Q3 loss on lower impairment charge

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London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

International Lease Finance (ILFC) improved its third quarter operating income to $39 million on lower impairment charges of $98 million during the period.

The results compare favorably to an operating loss of $1.3 billion in the year-earlier period, including $1.5 billion of impairment charges and fair value adjustments.

During the period, ILFC recorded rental revenues of $1.1 billion, essentially flat compared with the third quarter of 2011, parent company American International Group (AIG) confirms in an earnings statement.

"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," says AIG.

ILFC raised approximately $750 million during the quarter 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 9 October, ILFC entered into a $2.3 billion unsecured three-year revolving credit facility with a group of 10 banks and terminated its existing $2 billion revolving credit agreement originally scheduled to expire in 2014.