(Reuters) – Boeing said on Wednesday its clients continue to have enough funds to finance aircraft purchases, as the roll-out of COVID-19 vaccinations spurs a recovery in air travel after the pandemic pushed the sector to the brink of collapse last year.
The aviation industry’s commercial aircraft delivery funding volume fell by about 40% to $59 billion in 2020 as credit spreads widened, capital markets closed to aviation and banks retreated, Boeing said.
“Despite the unprecedented impacts of COVID-19 on the global aerospace industry, there generally continues to be liquidity in the market for our customers,” said Tim Myers, president of Boeing Capital, the planemaker’s financing arm.
“We expect it to further improve as travel begins to rebound.”
The industry continues to see new sources of funding through the pandemic, Boeing said, as institutional investors and funds seek aviation exposure despite some financiers pausing aircraft financing.
“We expect that capital will continue to be routed into the sector by established players and as new entrants seek opportunities during the industry’s recovery,” Myers said.
Reporting by Shreyasee Raj and Ankit Ajmera in Bengaluru; Editing by Devika Syamnath
