CHICAGO, May 2, 2022
/PRNewswire/ -- Boeing Capital Corporation, a wholly-owned
subsidiary of Boeing [NYSE: BA], today released the 2022 Commercial
Aircraft Financing Market Outlook (CAFMO) showing improving
financing stability as the industry recovers from the impacts of
the global pandemic.
"Financiers and investors remain committed to the long-term
fundamentals that continue to make aircraft a valuable asset
class," said Tim Myers, president of
Boeing Capital Corporation. "Despite the changing landscape since
the emergence of the COVID-19 pandemic, the industry remains
resilient and there continues to be sufficient liquidity in the
market for our customers with increasing opportunities as traffic
recovers."
The 2022 CAFMO reflects Boeing's near-term view of market
dynamics and assesses financing sources for new commercial airplane
deliveries.
"Industry fundamentals continue to show varying degrees of
strength in different markets that reflect the regional trends of
the global pandemic," Myers said.
The 2022 CAFMO, an introductory video, regional highlight videos
and regional financing data is available at www.boeing.com/CAFMO.
Select highlights include:
- For the second consecutive year, 100% of
Boeing deliveries were financed by third parties with the top
sources of delivery funding in cash, capital markets and sale
leasebacks.
- The capital markets continued to play a key
role in shoring up liquidity for the sector, with the market close
to pre-pandemic levels for most issuers as spreads tightened
throughout the year.
- Secured debt for lessors also made a return to
pre-pandemic levels with the ABS market making a comeback with
volumes at around $8.7 billion, as
lessors took advantage of the favorable rate environment.
- Although risk tolerance and activity levels
were below pre-pandemic levels, pockets around the world are
increasingly looking for business through bank debt.
- Institutional investors and funds continued to
seek aviation exposure, filling in where traditional sources of
capital retrenched.
- Export credit supported financing for Boeing
aircraft contributed about 5% of total funding last year, primarily
by the Export-Import Bank of the United
States and with one deal supported by UK Export Finance.
The Boeing 2021 Commercial Market Outlook, a separate annual
20-year forecast addressing the market for commercial airplanes and
services, projects that through 2040 there will be demand more than
43,500 new airplanes valued at $7.2
trillion.
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, international armed conflict, 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 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.
As a leading global aerospace company, Boeing develops,
manufactures and services commercial airplanes, defense products
and space systems for customers in more than 150 countries. As a
top U.S. exporter, the company leverages the talents of a global
supplier base to advance economic opportunity, sustainability and
community impact. Boeing's diverse team is committed to innovating
for the future, leading with sustainability, and cultivating a
culture based on the company's core values of safety, quality and
integrity. Learn more at boeing.com.
Contact
Mary Kay
Leo
Boeing
Communications
1-312-218-5060
marykay.leo@boeing.com
Peter Pedraza
Boeing
Communications
1-312-618-8998
peter.p.pedraza@boeing.com
View original
content:https://www.prnewswire.com/news-releases/boeing-reports-increased-stability-and-growth-for-aircraft-finance-sector-301534149.html
SOURCE Boeing