April 21, 2025
Preowned private jet dealers say economic uncertainty, tariffs, and cost of maintenance are tempering their outlook for the next six months.
According to the International Aircraft Dealers Association, pre-owned private jet transactions increased 24.4% year-over-year in Q1 2025.
Looking ahead is far less rosy.
Concerns go beyond tariffs and economic uncertainty.
Maintenance liabilities, particularly for older jets, are increasingly spooking buyers.
This is a change from IADA’s Q4 report, released January 27, 2025, in which dealers expressed “a collective sense of optimism.”
In the first quarter, IADA dealers had 250 aircraft under contract, compared to the 251 recorded at the end of the first quarter 2024.
Exclusive selling contracts dropped from 304 in the first quarter of 2024 to 203 in the just-ended first quarter, reflecting more of a buyers’ market.
IADA-accredited dealers and brokers claim 50% of worldwide transactions.
Executive Director Lou Seno said in announcing the Q1 numbers, “Although aircraft pricing has held steady, our members are voicing a more reserved outlook compared to the high confidence levels we saw at the end of 2024.
He added, “The six-month forecast reflects a tempered approach as dealers navigate broader economic uncertainties.”
Chairman Phil Winters added, “IADA dealers remained active in the first quarter, but their sentiment is shifting.”
He continued, “While demand continues, the industry is watching global financial trends closely, which are shaping more conservative expectations for the remainder of the year.”
According to the trade association:
After a post-election bump-up in Q4 2024, reflecting very high expectations for the new U.S. administration, general market optimism slipped to 3.09 on a 1–to-5 scale in our recently completed Q1 2025 IADA member survey, near levels measured in Q2 and Q3 2024, but lower than Q1 2024’s 3.30. IADA members’ expectations for pro-business policies as expressed in our Q4 2024 survey results became more mixed in Q1 2025, diluted by uncertainty, with the potential for market lift later on in 2025. Respondents nevertheless project a relatively healthy market for aircraft sales for the next six months, at 3.20 on a 1–to-5 scale, up from 3.12 in Q1 2024 YoY but down from a more exuberant 3.53 in Q4 2024.
Highlighting the newfound apprehension from the private jet sellers were comments from members.
Canada-based Skyservice Business Aviation’s Geoffrey Carlyle said, “The questionable tariff tactics by Trump are creating market volatility and uncertainty in the marketplace.”
Jeff Dunn of JA Mitsui Leasing Capital Corporation added, “It’s a difficult time to predict market conditions.”
He noted, “Our industry’s health depends significantly on the recent tariffs imposed by the Trump administration. It remains unclear whether these tariffs will stay in place and how they will ultimately affect business aviation.”
Axiom Aviation’s Andy Toy said, “We are seeing a slight pause in the market due to the administration’s initiatives, including stock market fluctuations and interest rates. However, I don’t think these trends will persist for long.”
JBA Jets’ Toby Smith said, “2025 has started sluggishly compared to recent years.”
He noted, “Economic uncertainty, including questions surrounding bonus depreciation, has many potential buyers waiting for a clearer picture.”
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Not all concerns were around tariffs and economic uncertainty.
John Odegard of 5×5 Trading noted, “Older and out-of-production aircraft are seeing slower demand.”
Shawn Dinning of Dallas Jet International added, “Age and near-term maintenance liabilities are major risk factors for a successful sale of a pre-owned aircraft.”
He concluded, “Buyers are no longer ignoring these variables.”
Fleet operators have pointed to parts shortages and a lack of support for aircraft types that are no longer in production.
FlyExclusive said several older types exiting its fleet were only available around 30% of the time.
Shortages of a singular component, such as windshields, can ground airplanes for weeks and months instead of days.
The Barclays Business Jet Indicator showed that consumer interest in buying business jets fell by 49% from March to April.
The survey, which was conducted from April 9 to 15, had 65 respondents, per CNBC.
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However, the outlook wasn’t universally grim.
Rollie Vincent of Roland Vincent & Associates noted, “Demand remains solid, particularly for young, pre-owned aircraft.”
He added, “Overall utilization has stabilized, with continued strength in fractional flight operations.”
He believes, “As OEM supply chains recover and new production increases, we expect a gradual release of younger inventory from trade-ins.”
JetAviva’s Emily Deaton added, “Buying activity increased following the election, leading to Q1 aircraft closings spilling over from late 2024.”
She said, “Demand has remained steady as the year progresses.”
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