Yesterday’s AIN article re pre-owned mkt The preowned business aircraft market is on a steady pace, with transactions up 20% year over year (YOY) in the second quarter and sales of late-market aircraft remaining strong, according to the International Aircraft Dealers Association (IADA). The quarterly performance, IADA added, spurs “guarded” optimism for the rest of the year.
During the second quarter, 366 deals closed, the highest number since IADA launched its survey in 2020. Through the first six months, 620 sales were completed, up 14% YOY. IADA called the gain an indicator of a “healthy level activity in a rebalancing marketplace.”
Having said that, IADA also pointed to macroeconomic factors fueling ongoing uncertainty, including geopolitical tensions, global elections, and persistent concerns surrounding inflation and interest rates. “Most IADA members have been impacted by these headwinds, and still view the global preowned business jet market with guarded optimism,” the association said.
Regarding rebalancing, transaction times are taking longer as buyers and sellers are returning to negotiation pre-purchase inspection findings—a step often skipped amid the overheated market during the pandemic. New acquisition agreements fell slightly in the second quarter, from 294 in 2023 to 289 this year, but 570 aircraft were under contract in the most recently ended quarter, compared with 442 last year. The number of deals involving a price drop jumped significantly from 125 in the second quarter of 2023 to 211 this year. The association said the market report is based on both quantitative sales data and the exclusive, on-the-ground perspective of IADA members.
“For the next six months, two-thirds of members surveyed predict that pricing and demand for large and ultra-long-range bizjets will decline while supply will increase, continuing a trend noted in our last quarterly report,” said IADA executive director Wayne Starling. “Most IADA survey respondents anticipate stable demand in the turboprop and light jet segments for the next six months, though opinions vary more for midsize and larger jets,” he added.