Preowned turboprop, light jet, midsize, large, and ultra-long-range jet markets, all show prices and demand up dramatically as supply will stay far below normal
Demand for used private jets will remain above supply for the next six months. That’s according to the International Aircraft Dealers Association.
“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,” said IADA Executive Director Wayne Starling.
He added, “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.”
IADA says its members buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. They average over 700 transactions and $6 billion in volume per year.
The spike caught the industry by surprise.
“It was unimaginable 15 months ago when transaction activity had ground to a halt as a result of the pandemic, that in September of this year, new aircraft would be trading at premiums, the OEM’s would have backlogs of 1-2 years in their most desirable models, pre-owned values would be up 20-to-30% plus YTD, and there would be effectively zero supply in most modern, pre-owned aircraft markets; however, that is exactly what has happened,” said Paul Kirby, EVP at NetJets’ QS Partners.
Used aircraft demand at record levels
IADA dealers forecast a significant increase in demand across all aircraft categories. They expect slight decreases in inventory for turboprops and light jets.
The inventory of other types will be stable to slightly down in the next half year.
Light jets are the most in-demand category for jet card users.
Over half (51% ) of jet card consumers use light jets, according to The Jet Card Report 2021 from Private Jet Card Comparisons.
The 100-plus page report based on surveys with over 400 jet card buyers will be released in the coming weeks.
IADA dealers say new acquisition agreements in Q3 jumped to 182 from 110 during the same period last year. Closed deals increased from 283 to 325.
Only seven deals included lower prices compared to 83 in 2020.
Lack of supply is leading to a massive change in jet card policies.