CAPA Think Tank: Show me the money - The outlook for aviation financing

With the airline industry saddled with debt from the COVID-19 pandemic, the cost of financing on the increase and aircraft deliveries trending towards pre-pandemic levels, what is the outlook for commercial aircraft financing?

• Airline credit ratings took a hit during the pandemic. How do airlines build back their credit ratings while battling heavy debt loads and the increased cost of capital?

• Airline lessors are expected to fund around 50% (or more) of global fleet deliveries in the next year. How well placed are lessors to absorb a higher cost of debt?

• Outside of banks, lessors and internal cash, how are alternative financing options changing?

• Environment, Society and Governance (ESG) issues have been hugely important in the finance sector. How does sustainability linked financing and other ESG elements factor into consideration for aircraft financing?