The Current Aircraft Finance Market Outlook for 2015 anticipates continued strength in the primary commercial aircraft finance sectors, with balance among funding sources and an unprecedented diversity of capital providers. In 2015, commercial aircraft finance strength should result in efficient financing for airlines and historically low levels of export credit usage, with commercial bank debt and the capital markets expected to cumulatively account for approximately 60 percent of delivery financing. Much of the bank debt and capital markets activity should be for lessors, who are expected to fund about 40 percent of all deliveries.
The strength we’re seeing in aircraft finance is largely the result of a healthy and balanced global demand for new aircraft, driven by anticipated passenger traffic growth, record airline profitability, and the continuation of a replacement cycle to improve the fuel and performance efficiency of a large portion of the global fleet. Concerns about fuel prices, interest rate hikes, currency volatility, political unrest, and health epidemics are responsible for some market angst. However, as long as these variables do not undermine global economic growth, the current trends for new airplane demand should continue in 2015, supporting continued strength and balance for the global aircraft finance industry.
Working together, we can translate this forecast into sensible business for all market constituents.