AMSTAT has released its latest business aircraft resale market update reporting recovered aircraft values. The report takes advantage of its market data combined with value data provided by the AMSTAT Aircraft Valuation Tool.
For the first eight months of 2021, resale retail transactions are up 57% over the same period in 2020 and up 47% versus the same period in 2019. At the same time, the inventory of available preowned jets and turboprops has reduced by 42%. Continued demand and shrinking supply are pushing up values back to and above pre-COVID-19 levels.
In the heavy jet segment the short term median value has continued to rise, with this metric up 19% over the last 12 months. During this period, the short term median value metric recovered everything lost in the first half of 2020 and is now 8% above pre-COVID-19 levels. This trend has been driven by robust transaction activity, up 49% in the first eight months of 2021 compared to the same period in 2020 and up 31% over the same period in 2019. The heavy jet inventory continues to decrease, it is down 41% year over year.
In the super-mid jet segment the short-term median value has risen 25% over the last 12 months, recovering everything lost in early 2020 and an additional 6% above the median value metric in January 2020. Like the heavy jet market, the upward trend in values has been driven by strength in resale transactions and a continued reduction in super-mid availability. Inventory in this segment is down 38% year over year. Resale retail transactions in the first eight months of 2021 are up 35% over the same period in 2020 and up 57% versus the same period in 2019.
The short-term median value of medium jets has risen 26% over the last 12 months and is now 5% ahead of its start of 2020 levels. The positive direction of values is in large part due to continued strong resale retail transaction activity with the first eight months of 2021 exceeding the same period in 2020 by 71% and the same period in 2019 by 68%. Values have also been driven up by a reduced supply, which is down 49% year over year.
For light jets the short-term median value has increased 20% over the last 12 months but remains 5% below its January 2020 mark. As with other markets, this upward trend has been driven by increased resale transaction activity, up 67% during the first eight months of 2021 versus the same period in 2020 and up 64% versus the same period in 2019. The inventory in this segment has fallen 46% year over year. AMSTAT believes that values in this segment have not recovered to early 2020 levels because it simply takes more to move the needle for light Jets than larger jets and there are more of these aircraft and greater diversity.
The short-term median value of turboprops has risen a net 12% over the last 12 months. There has been some up and down movement in this segment since May, but a recent upward trend has placed it 1% above its start of 2020 level. Resale transaction activity remains strong in this segment, up 50% in the first eight months of 2021 compared to the same period in 2020 and up 31% for the same period in 2019. The turboprop inventory has also decreased 36% year over year.
Andrew Young, AMSTAT general manager says: “As a percentage of active fleet, business jet and turboprop preowned inventories are at another all time low of 4.9%, and preowned transaction activity remains robust creating upward pressure on values. Buyers continue to have to act fast to purchase the preowned aircraft they want and are increasingly considering alternative makes and models, or even expanding what were perhaps previously acceptable limits on aircraft specifications such as age and total time.”