Loading

The world's aircraft financing markets are enjoying good health, for now

According to data from Boeing, improvements in load factor and aircraft utilisation over the past 10 years have saved the world's airlines from having to operate an additional 3,800 aircraft. If they still had the same level of load factor in 2017 as in 2007, today's fleet would need more than 1,000 more aircraft to fly current levels of demand. At 2007 levels of daily utilisation, they would need 2,800 more aircraft today.

This is another illustration of the airline industry's improved capital discipline, also evident in the lower fleet growth rates that CAPA has highlighted in presenting its analysis of the global airline operating margin cycle (most recently updated in Jan-2017). However, there has been a strong increase in global aircraft investment and, therefore, in financing needs since the end of the financial crisis.

There have also been changes to the mix of financing sources and there is now a good balance between cash, bank debt and capital markets, overlaid by leasing. Ultimately, the health of the aircraft financing market will follow the cycle, but currently they are in a healthy state.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com