American International Group reported net income attributable to AIG of $2.3 billion and after-tax operating income of $1.9 billion for the quarter ended June 30, 2012, compared to net income of $1.8 billion and after-tax operating income of $1.2 billion for the second quarter of 2011.

AIG said its ILFC aircraft leasing business second quarter 2012 operating income of $88 million was up from $86 million in the second quarter of 2011. During the second quarter of 2012, ILFC recorded rental revenues of $1.1 billion, essentially flat from the second quarter of 2011, resulting from the re-lease of older aircraft at lower rates, the impact of aircraft repossessed since December 31, 2011, a limited delivery schedule of new aircraft over the past year, and offset by revenue from AeroTurbine that was acquired by ILFC in the fourth quarter of 2011.

ILFC recognized impairment charges of $75 million in the second quarter of 2012, principally related to aircraft returned early from lessees, one residual value guarantee, and potential sale or part out of aircraft in the fleet. ILFC raised approximately $753 million in secured debt during the second quarter of 2012 to refinance existing secured debt and to purchase aircraft.

“AIG’s insurance operations and aircraft leasing business posted solid profits this quarter,” said Robert H. Benmosche, AIG president and chief executive officer. “The performance of our businesses and our stock price enabled the U.S. government to continue to profitably reduce its outstanding assistance to AIG, which includes the U.S. Department of the Treasury’s $5.7 billion AIG equity offering in May 2012.

The Federal Reserve Bank of New York’s Maiden Lane III loan was also paid in full during the quarter. “We are proud of what we have accomplished and believe we are close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit,” Benmosche said.

To read the AIG news release click here.