Boeing Forecasts Increased Growth for Aircraft Finance in 2023

(20/03/23)  Boeing's Commercial Aircraft Finance Market Outlook (CAFMO) for 2023 predicts another year of recovery and increased demand from aircraft financiers and investors.

The report is Boeing's annual review of aircraft financing trends and assesses near-term market dynamics and financing sources for new commercial airplane deliveries. Select highlights include:

Boeing's Commercial Aircraft Finance Market Outlook (CAFMO) for 2023

- In 2022, the majority of Boeing airplanes were funded with cash due to strong operational performance and de-leveraging efforts by customers.

- While cash funding will continue to play a significant part in delivery financing, the use of capital markets, bank debt and export credit is expected to expand.

- 2022 capital markets activity was lower compared to its heightened activity recorded in 2021.

- Export credit agencies supported nearly 5% of Boeing deliveries in 2022.

- Lessor-supported deliveries will remain stable but may face competition from other financing sources.

"With production and delivery increases and the reopening of certain regional markets, we forecast aircraft financing needs to reach near pre-pandemic levels in 2023," said Rich Hammond, vice president of Customer Finance at Boeing. "This positive trend reaffirms that our industry's fundamentals are strong and aircraft financiers and investors are well positioned as travel continues to recover."

The Boeing 2022 Commercial Market Outlook, a separate annual 20-year forecast addressing the market for commercial airplanes and services, reflects that the global market is recovering as Boeing projected in 2020.

Demand for domestic air travel has made a strong recovery across a number of regions, with international traffic gaining momentum as restrictions ease, tracking to return to pre-pandemic levels by 2023 to 2024.

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