American Airline’s Chapter 11 bankruptcy protection filing is affecting a sale-leaseback arrangement the airline has with European lessor AerCap.

The company and American in July agreed on a purchase-leaseback deal covering 35 Boeing 737-800s in July. AerCap notes that four of those aircraft have been delivered and leased to American; the carrier also operates two additional AerCap 737-800s. The lessor notes that “under U.S. Bankruptcy Law, American Airlines has the right to reject these leases; however, we do not expect them to do so.”

However, the November 29 filing by American parent AMR automatically puts on hold the obligations for the remaining 31 deliveries under the July deal. But, AerCap adds “we do intend to enter into discussions with American Airlines to try to reach agreement on terms and conditions pursuant to which we can continue to finance remaining aircraft.”

The American situation is only one of the temporary setbacks AerCap has recently suffered. It also terminated the leases of two Kingfisher A320s on November 15, five months early. Kingfisher is financially struggling. However, the lessor says it has already found a new customer for the aircraft.

The disclosure comes as AerCap reports nine-month revenue of €909 million, down from €1.3 billion for the same period last year. Total expenses were also down to €757 million from €1.1 billion for the first nine months of 2010. Net income for the first three quarters of 2011 were €96 million.