Boeing Forecasts Resiliency and Increased Growth for Aircraft Finance

Rhea-AI Summary

Boeing (NYSE: BA) has released its 2023 Commercial Aircraft Finance Market Outlook (CAFMO), indicating a strong recovery in aircraft financing, approaching pre-pandemic levels. Rich Hammond, Boeing's VP of Customer Finance, highlights production increases and regional market reopenings as key drivers. The report notes that in 2022, cash was the primary funding source due to strong operational performance. However, financing from capital markets, bank debt, and export credits is expected to rise. The overall market for commercial airplanes is recovering, with a return to pre-pandemic levels forecasted by 2023-2024.

Positive

• Forecast indicates aircraft financing will near pre-pandemic levels in 2023.
• Strong operational performance in 2022 supported the majority of airplane funding.
• Increased forecast for capital market activity and other financing sources.
• Global market for commercial airplanes is recovering as projected.

Negative

• Capital markets activity decreased in 2022 compared to 2021.
• Potential risks from economic conditions and regulatory approvals affecting production and delivery.

SEATTLE, March 15, 2023 /PRNewswire/ -- Boeing [NYSE: BA] today released the 2023 Commercial Aircraft Finance Market Outlook (CAFMO) showing another year of recovery and increased demand from aircraft financiers and investors.

"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 2023 CAFMO is Boeing's annual review of aircraft financing trends and assesses near-term market dynamics and financing sources for new commercial airplane deliveries.

An introductory video, presentation and regional financing data is available at www.boeing.com/CAFMO. 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.

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.

Caution Concerning Forward-looking Statements

Certain statements in this presentation 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 timing and conditions of 737 MAX or other airplane model regulatory approvals, lower-than-planned production rates and/or delivery rates, and increased considerations to customers and suppliers; economic and geopolitical 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, 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.

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. Join our team and find your purpose at boeing.com/careers.

Contact
Mary Kay Leo
Boeing Communications
1-312-218-5060
marykay.leo@boeing.com

Boeing Media Relations
media@boeing.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/boeing-forecasts-resiliency-and-increased-growth-for-aircraft-finance-301772116.html

SOURCE Boeing

FAQ

What does Boeing's 2023 Commercial Aircraft Finance Market Outlook indicate about aircraft financing?

The outlook forecasts aircraft financing needs to approach pre-pandemic levels in 2023 due to increased production and market recoveries.

How was the majority of Boeing's airplane funding achieved in 2022?

Most funding was sourced through cash due to strong operational performance and de-leveraging efforts by customers.

What financing trends are expected according to Boeing's CAFMO report?

The report anticipates growth in the use of capital markets, bank debt, and export credit for funding airplane deliveries.

What is the forecast for the global commercial airplane market?

The market is expected to return to pre-pandemic levels by 2023 to 2024, driven by recovering domestic and international travel.

What risks are associated with Boeing's forward-looking statements in the CAFMO?

Risks include potential impacts from the COVID-19 pandemic, regulatory approvals, production and delivery challenges, and economic conditions.