American International Group reported net income of $19.8 billion for the quarter ended December 31, 2011, compared to $11.2 billion in the prior year quarter. For the full year 2011, net income was $17.8 billion compared to $7.8 billion in 2010.

AIG said net income reflected a U.S. consolidated income tax group deferred tax asset valuation allowance release of $17.7 billion for the quarter and $16.6 billion for full year 2011.

AIG’s aircraft leasing unit, ILFC, reported fourth quarter 2011 operating income of $119 million, compared to an operating loss of $606 million in the fourth quarter of 2010. During the fourth quarter of 2011, ILFC recorded rental revenues of $1.1 billion, compared to $1.2 billion in the fourth quarter of 2010.

The decline in aircraft leasing revenue was primarily driven by lower net overhaul revenues. Additionally, ILFC recorded asset impairment charges, fair value adjustments, and other reserve charges of $40 million in the fourth quarter of 2011, due mainly to the early return and repossession of aircraft that are more likely than not to be parted-out, compared to $742 million in the fourth quarter of 2010. For the quarter ended December 31, 2011, ILFC had an average of 932 aircraft in its fleet, compared to 936 aircraft in the fourth quarter of 2010.

To read the full AIG news release, click here.