• Financing industry to provide approximately $127 billion in aircraft funding in 2016
  • Growing number of new participants attracted by strong commercial aviation industry
  • Lessors continue to drive innovation in funding options

Seattle, WA | January 22, 2016– Boeing [NYSE: BA] says airlines and lessors will continue to have access to efficient funding at attractive pricing throughout 2016 as new participants enter the aircraft financing industry and current participants innovate and provide more options.

The eighth annual Boeing Current Aircraft Finance Market Outlook, released today, forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry’s overall delivery financing requirements for the next five years.

“The sustained strength of the aircraft finance markets is being driven largely by healthy aviation industry fundamentals and balanced supply and demand for commercial aircraft,” said Tim Myers, president of Boeing Capital Corporation.

“Passenger traffic is growing above long-term trends, airplane utilization and load factors continue to rise, replacement demand remains strong and global airlines are producing record operating results and profits. With these conditions prevailing, financiers continue to see commercial aircraft as a good investment and that’s resulting in good access to efficient funding for our customers.”

Boeing forecasts continued strong demand for new commercial airplanes in 2016, resulting in about $127 billion in deliveries across the industry.

“We’ve seen a number of new entrants in the aircraft financing industry over the past few years and we expect to see more this year as commercial aircraft continue to be seen as attractive, stable assets,” Myers said. “One of the exciting things to watch this year will be the way existing participants respond to the new entrants, driving innovation and creating more funding options for airlines and lessors.”

Key elements of the 2016 finance market outlook include:

  • The trend of lessors selling all or part of their portfolios to participants in the capital markets to create capacity for new acquisitions and opportunities for future growth should continue, thanks to ongoing innovation within the leasing industry
  • Lessors are expected to support about 40 percent of all deliveries, securing most of their leverage through the capital markets
  • Capital markets and banks should account for approximately two-thirds of delivery funding
  • Commercial bank debt will continue to play a vital role in aircraft finance, but tighter global regulations and U.S. dollar pressures (in certain markets) may constrain the sector’s volume
  • Export credit usage should continue at historically low levels, reflecting the current strength of commercial markets

The 2016 Current Aircraft Finance Market Outlook is available at www.boeingcapital.com/CAFMO

  • Strong air transport industry fundamentals underpinning finance market health
  • New participants attracted by decades of predictable, attractive returns
  • Export credit usage to continue at historically low levels

Chicago, IL | December 9, 2014– Boeing [NYSE: BA] says decades of predictable, attractive returns have led to unprecedented diversity, efficiency and volume of financing for commercial airplanes, with airlines and lessors set to benefit from increased competition among lenders and historically low interest rates in 2015.

The seventh annual Boeing Current Aircraft Finance Market Outlook, released today, forecasts the sources of financing for new commercial airplane deliveries in the coming year and the industry’s overall delivery financing requirements for the next five years.

“The strength we’re seeing in aircraft finance is largely the result of a healthy and balanced global demand for new aircraft, which is being driven by anticipated growth in passenger traffic, record airline profitability and the continuation of a replacement cycle to improve the fuel and performance efficiency of the global fleet,” said Tim Myers, vice president and general manager Aircraft Financial Services for Boeing Capital Corporation.

“The stable performance of aircraft finance and investment over the past few years – particularly through the global financial crisis – is attracting new participants and is driving diversification both geographically and in terms of funding sources. That’s good news for airlines and lessors who will continue to have access to highly efficient financing,” he added.

Boeing forecasts strong demand for new commercial airplanes in 2015, resulting in about $124 billion in deliveries across the industry.

“That’s doubled since 2010. And while we expect to see the growth moderate over the next few years, we’re still expecting annual airplane delivery finance requirements to be around $156 billion in 2019,” Myers said.

Key elements of the 2015 finance market outlook include:

  • Lessors should continue to drive innovation in aircraft finance, supporting about 40 percent of all deliveries
  • Funding for deliveries is expected to be balanced among cash, commercial bank debt and capital markets
  • Capital markets are expected to support nearly one third of new deliveries
    Reflecting the current strength of commercial markets, export credit usage should continue at historically low levels
  • Investor demand and lessor portfolio sell-down initiatives should support continued interest and investment in the used aircraft market

In addition to the forecast for the coming year and projections of five-year delivering financing requirements, the 2015 report made adjustments for two notable trends over the past three years: bank debt liquidity was higher than expected, and export credit usage declined faster than was previously forecast.

The 2015 Current Aircraft Finance Market Outlook is available at www.boeingcapital.com/CAFMO