A Boeing Co. unit issued a new forecast of capital markets’ support for new aircraft, predicting the trend of favorable financing will continue into 2018. The annual Boeing Current Aircraft Finance Market Outlook (CAFMO) evaluates and forecasts sources of financing for new commercial jets, and the industry’s overall delivery financing requirements for the coming five years.
CAFMO also explores the trends within major funding sources and the potential impact on the commercial aviation market. The new report is available for download.
The forecast for 2018 estimates new-commercial airplane deliveries by all manufacturers to total $139 billion in 2018, a rise of $17 billion from 2017, and growing to $189 billion by 2022.
According to Boeing, the sustained strength of the aircraft-finance sector is supported by recent year-over-year increases in new jet deliveries, which have increased in volume and value over the past decade.
“Financiers and investors continue to be attracted to the aircraft market, and part of that appeal is because it’s a growth business with stable returns,” according to Tim Myers, president of Boeing Capital Corp. “We’ve remained in a robust market for some time now along with consistently increasing growth in global diversity of passenger travel, and this has also spurred a steady increase in the number of lessors entering the industry worldwide.”
However, Myers noted that there are new funding sources emerging, including insurance and global export credit. The 2018 CAFMO includes data on regional-specific financing trends and global financing markets.
“It’s important to note these innovations are complementary to the critical role permanent access to domestic export credit plays, especially in times of poor market performance,” Myers said.