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:
– 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.
