The International Aircraft Dealers Association (IADA) has reported that the business aviation market remained fundamentally strong in the first quarter of 2026. The organisation's First Quarter Market Report, featuring perception surveys and actual performance data, signalled continued demand outpacing supply and stable pricing across most categories, leading to generally positive expectations for the year ahead.

Survey respondents described a market defined by resilience and discipline, even as geopolitical uncertainty and macroeconomic risks introduce a more measured outlook compared with late 2025. Overall sentiment reflects steady performance with underlying strength in demand, constrained inventory and sustained transaction activity.

“The prevailing tone across respondents is one of measured confidence,” says John Odegard, chair of IADA and co-founder and partner of 5x5 Trading, an IADA-accredited dealer. “The business aviation market remains fundamentally healthy, demand continues to outpace supply, values are holding firm and buyer interest remains broad. However, a growing undercurrent of geopolitical and macroeconomic uncertainty is tempering enthusiasm somewhat heading into mid-2026.”

First quarter 2026 IADA activity reflects continued strength in transaction volume and dealer engagement, with several key indicators showing year-over-year growth compared with the first quarter of 2025. Closed deals rose to 333 in Q1 2026 from 316 in Q1 2025, extending to five years a trend of incremental first quarter increases and reinforcing sustained demand across the business aviation market.

Acquisition agreements also increased to 167 from 134, signalling a stronger pipeline of future transactions, while dealer inventory purchases more than doubled, rising from 29 to 65, driven in part by a sharp increase in March activity. At the same time, other indicators point to a more balanced and evolving market environment.

The number of aircraft under contract declined slightly to 235 from 250, and exclusive sell agreements eased to 188 from 203, suggesting a modest normalisation following elevated activity levels in 2025. Price reductions dropped significantly to 26 from 43, indicating continued pricing resilience, even as deals that fell apart increased to 49 from 37, reflecting a more cautious buyer base and the impact of external uncertainties.

Inventory levels remain historically tight across nearly all segments, from turboprops through to large-cabin jets. While the surge of transactions in the fourth quarter of 2025 pulled forward significant deal volume, supply constraints persist and continue to support pricing. Late-model, well-maintained aircraft, particularly those with clean maintenance histories, continue to command premium pricing with minimal negotiation flexibility.

Demand remains strong and globally diversified, with activity across North America, Latin America, Africa and other regions. However, respondents noted a shift toward a more measured pace, with some buyers adopting a ‘wait-and-see’ approach in response to geopolitical developments.

IADA's first quarter member survey provides a detailed outlook across key market indicators: pricing – expected to remain stable to slightly lower overall, with mid-size and large-cabin aircraft showing the greatest potential for modest increases; supply – projected to remain predominantly stable, with variation depending on aircraft category; willingness to inventory – anticipated to increase slightly, reflecting growing confidence among dealers and brokers; demand – expected to remain stable to slightly higher across all segments.

The first quarter of 2026 reflects a business aviation market that is stabilising at elevated levels of activity. Strong demand, limited supply and supportive financial conditions continue to define the landscape, while geopolitical and economic uncertainties shape a more measured outlook.

Industry participants broadly expect the market to remain stable through the next 12 months, with potential for improvement as conditions evolve. In response to the question: ‘Over the next 12 months, do you expect the market to soften, remain stable or improve?’ survey respondents indicated expectations for a stable market.

Key factors supporting the market include: reinstatement of 100% bonus depreciation in the US; lower interest rates supporting financing and buyer confidence; extended OEM backlogs sustaining demand for preowned aircraft; and strong underlying economic fundamentals.

At the same time, respondents identified several ongoing risks: geopolitical instability, particularly in the Middle East; MRO bottlenecks and parts shortages; OEM production delays and quality concerns; and continued uncertainty surrounding global tariff policies.