- For second consecutive year, 100% of Boeing deliveries were financed by third parties with the top sources of delivery funding coming from cash, capital markets and sale leasebacks.
- Capital markets continued to play a key role in shoring up liquidity for the sector, close to pre-pandemic levels for most issuers as spreads tightened throughout the year.
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 improving financing stability as the industry recovers from the impacts of the global pandemic.
"Financiers and investors remain committed to the long-term fundamentals that continue to make aircraft a valuable asset class," said Tim Myers, president of Boeing Capital Corporation. "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."
The 2022 CAFMO reflects Boeing's near-term view of market dynamics and assesses financing sources for new commercial airplane deliveries.
"Industry fundamentals continue to show varying degrees of strength in different markets that reflect the regional trends of the global pandemic," Myers said.
The 2022 CAFMO, an introductory video, regional highlight videos and regional financing data is available at www.boeing.com/CAFMO. Select highlights include:
- For the second consecutive year, 100% of Boeing deliveries were financed by third parties with the top sources of delivery funding in cash, capital markets and sale leasebacks.
- The capital markets continued to play a key role in shoring up liquidity for the sector, with the market close to pre-pandemic levels for most issuers as spreads tightened throughout the year.
- Secured debt for lessors also made a return to pre-pandemic levels with the ABS market making a comeback with volumes at around $8.7 billion, as lessors took advantage of the favorable rate environment.
- Although risk tolerance and activity levels were below pre-pandemic levels, pockets around the world are increasingly looking for business through bank debt.
- Institutional investors and funds continued to seek aviation exposure, filling in where traditional sources of capital retrenched.
- Export credit supported financing for Boeing aircraft contributed about 5% of total funding last year, primarily by the Export-Import Bank of the United States and with one deal supported by UK Export Finance.
The Boeing 2021 Commercial Market Outlook, a separate annual 20-year forecast addressing the market for commercial airplanes and services, projects that through 2040 there will be demand more than 43,500 new airplanes valued at $7.2 trillion.
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Certain statements in this document may be "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates" and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future plans, business prospects, financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict.
Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including the COVID-19 pandemic and related industry impacts; the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower-than-planned
production rates and/or delivery rates, and increased considerations to customers and suppliers; economic conditions in the United States and globally; general market and industry conditions as they may impact us or our customers; reliance on our commercial customers, our U.S. government customers and our suppliers; the overall health of our aircraft production system, international armed conflict, as well as the other important factors disclosed previously and from time to time in The Boeing Company's filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any such statement, whether as a result of new information, future events or otherwise, except as required by law.
Boeing Capital Corporation is a global provider of financing solutions. A wholly-owned subsidiary of The Boeing Company, Boeing Capital offers asset-backed lending and leasing, concentrating on assets that are critical to the core operations of Boeing customers. Boeing Capital's primary mission is to support the other Boeing business units by ensuring customers have the financing they need to buy and take delivery of their Boeing products.
As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future, leading with sustainability, and cultivating a culture based on the company's core values of safety, quality and integrity. Learn more at boeing.com.
Mary Kay Leo