CHICAGO, April 14, 2021 /PRNewswire/ -- Boeing [NYSE: BA]
projects global and diversified funding will continue to flow into
the aircraft financing sector as the aviation sector navigates the
global pandemic and vaccine deployment continues to accelerate.
"Financiers and investors understand the industry's resilience
and the long-term fundamentals that make aircraft a valuable asset
class," said Tim Myers, president of
Boeing Capital Corporation. "Despite the unprecedented impacts of
COVID-19 on the global aerospace industry, there generally
continues to be liquidity in the market for our customers, and we
expect it to further improve as travel begins to rebound."
The 2021 Current Aircraft Finance Market Outlook (CAFMO), the
first published since 2019, reflects Boeing's near-term view of
market dynamics and assesses financing sources for new commercial
airplane deliveries. Due to the ongoing impacts of the pandemic,
the 2021 CAFMO excludes its customary one- and five-year industry
financing projections.
"Industry fundamentals continue to show varying degrees of
strength in different markets depending on the regional trends of
the global pandemic," Myers said. "We expect that capital will
continue to be routed into the sector by established players and as
new entrants seek opportunities during the industry's
recovery."
The 2021 CAFMO reports the aircraft financing environment ended
2020 with enough liquidity to finance deliveries, but with stresses
particularly in the bank debt and tax equity markets. The 2021
CAFMO, an introductory video and regional financing data is
available at www.boeing.com/CAFMO. Select highlights include the
following:
- At the industry level, commercial aircraft delivery funding
volume totaled $59 billion, a 40%
decrease from 2019 levels.
- The top sources of Boeing delivery financing were cash, bank
debt and capital markets, and 100% of Boeing deliveries were
financed by third parties.
- Aircraft lessors executed a significant volume of
sale-leaseback transactions, and the industry-wide leased fleet
climbed to 46%.
- Capital markets for aviation volumes were 70% higher than
2019.
- Commercial banks shored up the aviation industry's need for
liquidity early in the pandemic, but long-term bank debt became one
of the less utilized forms of financing.
- Institutional investors and funds continued to seek aviation
exposure, stepping up as some financiers paused and sector credit
spreads widened.
- Export credit agencies remain a small but important funding
source during the pandemic.
- Credit-enhanced financing saw further progress as a
complementary funding source, totaling to 4% of the financing mix
for Boeing deliveries.
The Boeing 2020 Commercial Market Outlook, a separate annual
20-year forecast addressing the market for commercial airplanes and
services, projects passenger traffic growth at an average rate of
4% per year. The global commercial fleet is expected to reach
48,400 by 2039, up from 25,900 airplanes today.
Caution Concerning Forward-looking Statements
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, 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 is the world's largest aerospace company and leading
provider of commercial airplanes, defense, space and security
systems, and global services. As a top U.S. exporter, the company
supports commercial and government customers in more than 150
countries and leverages the talents of a global supplier base.
Building on a legacy of aerospace leadership, Boeing continues to
lead in technology and innovation, deliver for its customers and
invest in its people and future growth.
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.
Contact:
Peter
Pedraza
Boeing Communications
1-312-618-8998
peter.p.pedraza@boeing.com
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SOURCE Boeing