Q2 used private jet sales by IADA members increased 52% compared to Q1 with no signs of a let-up
Preowned private jet sales by International Aircraft Dealers Association members continued to climb in the second quarter of 2021. As a result, the inventory of late model private aircraft is tight, placing upward tension on prices, according to the group.
IADA dealers closed 320 preowned aircraft sales transactions in the second quarter of 2021, versus 211 in the first quarter.
Another 315 aircraft ended the quarter under contract. They are expect close in the next few months. That number is also up, compared to 246 in the first quarter.
According to the group, members were involved in 1,367 global transactions, worth more than $11.3 billion, in
the 12-month period through June 2021.
“IADA members experienced success during the pandemic and now are experiencing accelerating momentum. The second quarter continued the upward trajectory from the first quarter,” said IADA Executive Director Wayne Starling.
He added, “In fact, the only negative on the horizon is that there is a shortfall of inventory. We have buyers with funds to purchase, but demand for late model aircraft with attractive configurations exceeds supply, which could increase pressure on prices and lengthen transactions.”
Only about half of the 7% of private jets currently for sale “are newer late model quality aircraft.” Of those, half are located internationally, with a high percentage are located in China, according to IADA.
This report provides actual sales data from the IADA accredited dealer network.
Used business jet market to stay strong
In addition, the report surveys the outlook of nearly 900 members, including accredited dealers, certified brokers and products and services members.
On a scale of 1-to-5, with 5 being best ever, respondents project the business aircraft sales market six months out a 3.8 – better than normal. That’s an increase from 3.5 in IADA’s Q1 survey and 3.1 in Q4 2020.
Global Jet Capital recently predicted a 7.4% compound annual growth rate of new and pre-owned private jets through 2025.
A just completed survey of subscribers to Private Jet Card Comparisons predicts new-to-private aviation flyers will continue to fly regularly in a post-Covid world, with a large sector of existing users increasing their use of private jets.
Looking to buy a preowned private jet? Here are questions you should ask prospective brokers.