CHICAGO, May 2, 2022 /PRNewswire/ — Boeing Capital Corporation, a wholly owned subsidiary of Boeing [NYSE: BA]today released the 2022 Commercial Aircraft Financing Market Outlook (CAFMO) showing improved stability in financing as the industry recovers from the effects of the global pandemic.
“Financialists and investors remain committed to the long-term fundamentals that continue to make aircraft a valuable asset class,” said Tim Myers, Chairman of Boeing Capital Corporation. “Despite the changing landscape since the emergence of the COVID-19 pandemic, the industry remains resilient and there is still ample liquidity in the market for our customers with growing opportunities as traffic recovers. “
The 2022 CAFMO reflects Boeing’s near-term view of market dynamics and assesses funding sources for new commercial aircraft deliveries.
“Industry fundamentals continue to show varying degrees of strength in different markets that reflect regional trends from the global pandemic,” Myers said.
The 2022 CAFMO, introductory video, regional highlight videos and regional funding data are available at www.boeing.com/CAFMO. Highlights include:
– For the second consecutive year, 100% of Boeing deliveries were financed by third parties, with the main sources of financing for deliveries being cash, capital markets and sale-leasebacks.
– Capital markets continued to play a key role in bolstering sector liquidity, with the market close to pre-pandemic levels for most issuers, with spreads tightening throughout the year.
– Secured debt for lessors also returned to pre-pandemic levels, with the ABS market making a comeback with volumes at around $8.7 billionlessors having taken advantage of the favorable pricing environment.
– Although risk tolerance and activity levels have been below pre-pandemic levels, pockets around the world are increasingly looking for business through bank debt.
– Institutional investors and funds continued to seek exposure to aviation, replacing where traditional sources of capital have shrunk.
– Export credit-backed financing for Boeing aircraft accounted for about 5% of total financing last year, mainly from the Export-Import Bank of United States and with a deal backed by UK Export Finance.
The Boeing 2021 Commercial Market Outlook, a separate 20-year annual forecast for the commercial aircraft and services market, projects that through 2040 there will be demand for more than 43,500 new aircraft valued at $7.2 trillion.
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Boeing Capital Corporation is a global financing solutions provider. A wholly owned subsidiary of The Boeing Company, Boeing Capital offers asset-backed lending and leasing, focusing on assets critical to the core businesses of Boeing customers. Boeing Capital’s primary mission is to support other Boeing business units by ensuring customers have the financing they need to purchase and take delivery of their Boeing products.
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Mary Kay Leo