Q1 preowned private jet sales increase for IADA dealers

Aircraft dealer members of the International Aircraft Dealers Association increased closed deals in Q1 of 2024.

The dealers, who say they represent 50% of global preowned aircraft sales, saw closed deals jump from 239 to 253 tails, a 5.9% increase year-over-year.

By comparison, that was still below the frenzied 288 units sold in the first three months of 2022.

Q1 is typically the slowest quarter for used private jet sales to close, according to the trade group.

In announcing the results, IADA said, “At the end of Q1 2024, the pre-owned business aircraft market is objectively healthy, with numerous signs of rebalancing after the white-hot sales environment of 2021 through mid-2022.”

It continued, “Young pre-owned inventory remains in scarce supply, as buyers appreciate the quality of these assets, which are reasonable alternatives to all-new models, most of which are effectively on two-plus-year backlogs at the aircraft manufacturers. Transaction prices for older aircraft have rebounded, evidence of a healthy and stabilizing market.”

IADA wrote, “Retail transactions of pre-owned aircraft peaked in 2021 and into 2022, emptying the available on-market inventory and driving a surge in transaction prices.”

Rating the market

In assessing current business conditions, the brokers rate the current sales market as 3.3 on a scale of five, down from 3.6 a year ago but up from 3.2 in Q4 of 2023.

One represents the worst ever, and the five best.

According to Jefferies, the total number of used business jets for sale in April 2024 rose by 2% month-to-month and 26% year over year.

There are 1,161 private jets for sale this month, up from 1,116 units in March 2024 and 922 in April 2023.

Looking ahead to six months, the IADA dealers rate the market at 3.1, down from 3.2 in Q1 2023 and up from 3.0 in Q4 2023.

The financing and leasing outlook was flat at 2.9, while the six-month forecast for insurance dropped to 2.7 from 2.9.

Regarding pricing, dealers expect decreases across the board except for turboprops, where 58% believe they will remain stable.

By contrast, most dealers expect slight price dips in large-cabin jets (64%), midsize (61%), and light jets (58%).

At the same time, most dealers expect inventory to increase slightly.

Private Jet brokers speak

Toby Smith of JB&A Aviation, an IADA-accredited dealer, said about Q1, “After a small lag in activity during February, March is proving to be an extremely active marketplace. Buyers are making good offers with the expectation of putting aircraft into service during the second quarter, which is keeping supply in check and keeping prices stable in many markets, but not all. It remains a split market with newer, lower time aircraft in good demand, while older, higher time aircraft are losing value.”

However, Brant Dahlfors of Jet Transactions says there is cause for caution.

“The market is resetting post-COVID. Election, finance rates, tax benefit uncertainty is causing buyers to be cautious,” he notes.

“While the beginning of the year felt a bit slow and more normal, we started seeing a pick-up in activity at the end of February. We are still feeling good about the pre-owned market staying fairly robust and active for the year,” says 5×5 Trading’s John Odegard.

Byron Mobley of Wetzel Aviation adds, “The market is feeling more balanced. Buyers aren’t jumping in at a moment’s notice, and there is definitely more negotiation required than in the past couple of years.”

JetNet IQ analyst Rollie Vincent of Rolland Vincent & Associates notes, “Rebalancing continues. Fresh inventory of various pedigrees continues to flow into the market, providing new options for buyers – and a welcome sales stimulant.”

A possible upside is the delivery of new model Gulfstreams.

“It will be interesting to see what effect, if any, the certification and eventual deliveries of the new Gulfstream G700 and G800 have on the pre-owned market. One would think that for every G700 and G800 that gets delivered, a new G450/G550/G650 would hit the market,” says Kyle Wagman of Leading Edge Aviation Solutions.

Preowned private jets for sale

According to Jefferies, the number of private jets available for sale is currently 4.8% of the total fleet, compared to a one-year average of 4.2%.

According to the General Aviation Manufacturers Association, or GAMA, 730 new private jets were delivered last year, a 2.5% increase.

After the number of new private jet deliveries dropped from a record 1,317 in 2008 to 874 in 2010, the industry has never delivered more than 809 new business jets in a single year.

While the low was 644 in Covid-impacted 2020, six of the last 13 years have seen annual deliveries begin with a six.

READ: Historical Private Jet Deliveries By Year – 2000 through 2023