Boeing Forecasts Strong Aircraft Demand, Financing Options for 2016

(24/7 Wall Street, NewYork, 22 January 2016) Boeing Co. on Friday morning released its 2016 aircraft finance market outlook. The headline number is $127 billion, the forecast amount for new commercial deliveries in 2016, up from $124 billion in 2015. The company’s Boeing Capital Corporation also forecasts deliveries totaling $130 billion in 2017, $142 billion in 2018 and $161 billion in 2019. How all these airplanes will be paid for is the subject of Friday’s release. Boeing expects bank debt and capital markets to fund about 63% of all 2016 deliveries, with cash accounting for another 24% of funding and export credit to cover another 11%. Aircraft leasing companies are expected to use bank debt and capital market financing to acquire about 40% of all deliveries again next year.