Boeing expects 2023 aircraft financing to reach pre-pandemic levels
2023.03.15 11:46
© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the New York Stock Exchange (NYSE) in New York, U.S., August 7, 2019. REUTERS/Brendan McDermid/File Photo
(Reuters) – Boeing (NYSE:) Co said in a report on Wednesday that it expects commercial aircraft financing to reach near pre-pandemic levels in 2023, highlighting strong industry fundamentals.
The carrier released its outlook amid increased signs of distress in the banking sector as shares of Credit Suisse slumped on funding concerns. Banks have already been under pressure following the recent collapse of the Silicon Valley Bank and Signature Bank (NASDAQ:).
The planemaker did not immediately respond when asked if its outlook takes into account the stress in the banking sector.
Boeing, which annually reviews aircraft financing trends, said it sees increased interest from aircraft financiers and investors to aid commercial airplane deliveries.
“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, vice president of Customer Finance at Boeing.
The $100-billion-plus sector has benefited from a flood of investment chasing high dollar-denominated returns during a decade of central bank stimulus following the 2008 financial crisis.
Financiers at an industry gathering in Dublin in January said there was plentiful supply of funds for aviation but at tighter conditions, given rising interest rates and a sharp focus on credit quality.
