Sale prices of used business aircraft have risen by 20-30% driven by low inventory and a backlog of new aircraft orders from manufacturers, according to the International Aircraft Dealers Association's Third Quarter Market Report.
Projections for the next six months for the preowned turboprop, light jet, midsize, large and ultra-long-range jet markets, all show prices and demand are both up. Supply will continue to stay below normal levels, or possibly drop slightly lower.
Third quarter used aircraft dealer activity reflects a continuing in demand market with 182 aircraft agreements, compared to 110 year on year. There were only seven transactions with lowered prices in the third quarter of 2021, while there were 83 in the same period in 2020.
IADA dealers reported 40 transactions that fell apart in the quarter that just ended in 2021, compared to 50 in the same period in 2020. And IADA dealers closed 325 deals this past quarter, compared to 283 in the third quarter in 2020.
“Clearly, the market for used business aircraft is at an unusual place, with much higher prices and dearth of inventory in the most modern used business aircraft markets,” says IADA executive director Wayne Starling. “The third quarter responses from our membership predict the next six months will continue to have increased pricing and demand for all sectors of the market, while inventory deficiencies will continue to drive higher prices.”
The report is a product of opinions backed by hard sales data. It incorporates quantitative sales data from AircraftExchange.com and qualitative survey data from IADA accredited dealers. IADA markets are spread across the globe, with 36% of the activity in North America, 20% in Europe, 18% in Latin America, 15% in Asia and the Pacific, and 12% in the Middle East and Africa, with less than one percent in the Caribbean.