Boeing foresees aircraft financing reverting to "near pre-pandemic levels in 2023" after the re-opening of most travel markets and the projected expansion of travel in Asia to close to what it was pre-Covid.
“This positive trend reaffirms that our industry’s fundamentals are strong and aircraft financiers and investors are well positioned as travel continues to recover," said Rich Hammond, Boeing's vice president of customer finance.
The rebound would come after a trough for the industry over the 2020-22 period, which in turn followed a "high point" in 2018 and busy 2019.
In a presentation, the Seattle-based manufacturer suggested industry funding for aircraft would hit $94bn in 2023, almost as much as the $98bn recorded in 2019, which came before the Covid pandemic, the lockdowns and travel bans that followed, and the related inflationary surge over the past two or so years.
Boeing said most of its airplanes in 2022 were cash-funded due to "strong operational performance and de-leveraging efforts by customers", meaning that capital market activity was down on 2020 and 2021 to a level last seen in 2011.
North America dominated funding distribution, relative to other regions in other years, in 2022, which was likely down to the reopening and revival of travel in the region relative to the Asia-Pacific region.
The use of capital markets, bank debt and export credit is set to expand in 2023, Boeing said, though cash "will continue to play a significant part in delivery financing".
Meanwhile, lessor-supported deliveries "will remain stable", the Seattle-based manufacturer said, "but may face competition from other financing sources".