Boeing anticipates stable growth and broad,
diversified funding will continue to support efficient aircraft
financing in the next year.
The company’s annual Current Aircraft Finance
Market Outlook (CAFMO), released on Thursday, evaluates and
forecasts financing sources for new commercial airplane deliveries
in the coming year and the industry’s overall delivery financing
requirements for the next five years. The CAFMO also explores
trends within major funding sources and their potential impact on
the broader market.
“The aircraft financing market remains healthy,
with adequate commercial liquidity, providing a wide range of
efficient options available for our customers,” said Tim Myers,
president of Boeing Capital Corporation. “We expect another year
of balanced funding for commercial airplane deliveries in 2019,
mirroring the broader industry, primarily split between bank debt,
capital markets and cash.”
Boeing forecasts continued strong demand for new
commercial airplanes in 2019, resulting in about $143 billion in
deliveries by major manufacturers, with potential to grow to more
than $180 billion by 2023.
“Driven by a growing understanding of aviation’s
strong growth potential and the industry’s attractive returns, we
continue to see innovations and first-time entrants into the
market, providing increased capacity for funding new deliveries as
well as pre-delivery payments, mezzanine debt financing and the
secondary aircraft market,” Myers said.
New to this year’s report is the addition of the
secondary aircraft financing market outlook, as well as expanded
analysis of other funding sources, including the leasing
community, tax equity and the insurance market.
Highlights of the 2019 CAFMO include:
- Funding for deliveries is expected to be
balanced between commercial bank debt and capital markets and
- Airlines and lessors are expected to have some
of their lowest historical costs of financing.
- Capital markets continue to grow, bolstered by
- Aircraft leasing has grown to represent more
than 40 percent of in-service commercial aircraft ownership.
- Export credit agencies remain a small but
critical funding source, particularly in the United States.
- Strong industry fundamentals are attracting
more participants and investment in new deliveries and the used
The full 2019 CAFMO can be downloaded in .pdf