"Deliveries of large commercial airplanes (120+ seats) will likely grow 6% to 8% in the coming year underpinned by demand growth in developing markets,” the release quoted Moody's Senior Vice President Russell Solomon as saying. "In 2017, airlines will continue to benefit from steady passenger demand, relatively stable Gross Domestic Product rates and still-cheap jet fuel, all of which are broadly supportive of the coming production ramp."
According to the research firm, growth prospects for US military aviation are solid, considering bipartisan support in Congress for increased defense spending and further relief from a series of self-imposed budget constraints known as sequestration.
"Elevated geopolitical risk and rising security concerns are more of a global phenomenon that should also bolster industry coffers more broadly," Moody's stated in its release. "Additionally, under the incoming [Donald] Trump administration, reduced US support for allies could lead to higher defense spending by countries that increasingly need to defend their own borders."
Despite lawmakers’ seeming appetite for more defense spending, the release cautioned that companies in the sector should strive to control costs due to the increasingly volatile and uncertain environment in the US government.
