International Lease Finance Corp. on Thursday said that it had repaid a $2 billion bank loan as the Century City aircraft leasing company works to improve its financial condition.

The subsidiary of American International Group Inc. said the loan was issued as a revolving line of credit in October 2005. It was fully drawn in September 2008 as the company and its parent were hurt by the economic downturn. ILFC in recent months has been able to increase its liquidity by more than $12.5 billion through the issuance of debt, extensions of debt and sales of aircraft.

“These funds were borrowed at a time when ILFC was facing uncertainty in the financing markets,” Chief Financial Officer Fred Cromer said in a statement. “Now that we are in a much stronger liquidity position we are paying this maturity with cash on hand. This provides our core relationship banks with more flexibility to support us in the future.”

ILFC owns about 950 commercial jet aircraft that it leases around the world.