Boeing Reports Robust Airline Finance Sector Growth and Stability
Boeing Capital Corporation has today released their 2022 Commercial Aircraft Financing Market Outlook (CAFMO), showing improved financing stability as the industry recovers. For the second consecutive year, 100 percent of Boeing deliveries were financed by third parties.
On Monday (May 2, 2022), Boeing Capital Corporation announced the release of their 2022 Commercial Aircraft Financing Market Outlook (CAFMO), which shows improving financial stability as the industry recovers from the global COVID-19 pandemic. For the second consecutive year, 100 percent of Boeing deliveries were financed by third parties, with the top delivery funding sources coming from cash, capital markets and sale-and-leaseback transactions. Secured debt for lessors also made a pre-pandemic level comeback with around $8.7 billion in ABS volumes, as lessors took advantage of favorable rates. Additionally, institutional investors and funds continued to seek aviation exposure, making up where traditional capital sources retrenched. Export credit also contributed to around five percent of Boeing financing in 2021, primarily through the Export-Import Bank of the U.S., along with one deal supported by UK Export Finance.
In Monday’s announcement, Boeing Capital Corporation’s President, Tim Myers, said,
“Financiers and investors remain committed to the long-term fundamentals that continue to make aircraft a valuable asset class. Despite the changing landscape since the emergence of the COVID-19 pandemic, the industry remains resilient and there continues to be sufficient liquidity in the market for our customers with increasing opportunities as traffic recovers. Industry fundamentals continue to show varying degrees of strength in different markets that reflect the regional trends of the global pandemic.”
Boeing (NYSE: BA) is the world’s largest aerospace company and leading supplier of commercial airplanes, defense, space and security systems, as well as global services. The aerospace giant tops the list of the largest U.S. exporters, providing a significant positive impact to America’s annual GDP. Boeing supports government and commercial customers in over 150 countries and employs more than 160,000 team members worldwide. As Boeing continues to deliver for customers, they are committed to their legacy of aerospace leadership in technology and innovation and living the company’s core values of safety, quality and integrity.