Boeing Forecasts Sufficient Capital for Aviation Finance
"Financiers and investors understand the industry's resilience and the long-term fundamentals that make aircraft a valuable asset class," said
The 2021 Current Aircraft Finance Market Outlook (CAFMO), the first published since 2019, reflects
"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
- The top sources of
- 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
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