Bonus depreciation, OEM backlogs for new private jet deliveries and rationalized pricing are driving used business aircraft sales.
The International Aircraft Dealers Association says Q3 has brought the preowned private jet market to “a healthier, more orderly” place “with normalized with normalized inventory levels, rationalized pricing, and demand underpinned by resilient corporate travel and wealth creation in North America, the Middle East, and parts of Asia.”
Executive Director Lou Seno said, “The 2025 market is both disciplined and resilient.”
He added, “Buyers and sellers are operating in a more balanced environment, but timing, asset readiness, and proactive planning remain decisive factors. IADA-Accredited Dealers can give stakeholders a more detailed and nuanced snapshot of the details needed to make well-informed buying and selling decisions across a complex global landscape.”
Members of the trade group account for around 50% of all worldwide used private jet transactions.
The group cited several factors for its optimistic view.
It cited a report by member Jetcraft projecting 11,202 pre-owned sales over five years, totaling approximately $73.9 billion, driven by large-cabin private jets.
The return of 100% bonus depreciation in the U.S. “is accelerating demand for both new and pre-owned aircraft, particularly heading into year-end.”
The U.S.–EU agreement in July preserved tariff-free trade for aircraft, engines, and parts, ensuring stability across the trans-Atlantic market.
The group also pointed to the new private jet market:
‘On the new aircraft side, which shapes pre-owned dynamics via trade-ins and fleet refresh, OEM order books remain strong, even as the cadence of deliveries is gated by parts availability and labor bottlenecks that continue to ripple through aerospace supply chains. Equity research and industry updates through mid-2025 continue to flag supply-chain friction and labor constraints as ongoing headwinds, even as business aviation’s fundamentals improve conditions that indirectly support residual values for in-service aircraft when new-delivery slots are pushed further out.’
Of note, group members say, “Aircraft with up-to-date inspections and connectivity continue to command premium attention.”
In its market overview, IADA categorized its outlook of the market by aircraft type.
According to the report, “Momentum is firming after a cyclical cool-down from the 2021-2023 peak. Corporate and ultra-high-net-worth individual (UHNWI) users prioritize nonstop intercontinental capability, particularly as in-person, multicountry dealmaking has normalized. Jetcraft’s 2025 outlook explicitly spotlights rising large-jet volume as a driver of the five-year pre-owned forecast. Pricing has stabilized; sellers of pedigree aircraft with current programs (engines/ APUs), connectivity, and fresh inspections still command attention.”
IADA reports, “This category remains the liquidity engine of pre-owned deep buyer pools, ensuring broad mission utility. Normalized days-on-market and a gentle price reversion toward pre-surge trend lines define 2025. Financing availability and the reinstated bonus depreciation are especially catalytic here, as many U.S. buyers model total after-tax costs across five to seven years. Commentary from capital providers points to healthy interest in leases/financing as chief financial officers rethink capital allocation amid competing investments.”
Per IADA, “These workhorse categories benefit owner-pilots and charter providers. For high-quality airframes with up-to-date avionics, interiors, and paint, the bid/ask spread has narrowed. More price sensitivity is evident on older, higher time assets where upcoming maintenance events such as hot sections, props, and gear overhauls loom large for third-country operators.”
IADA said, “The supply-chain story is improving but not solved.”
It said, “Aerospace still faces parts lead times, logistics snags, and labor scarcity. That affects new-delivery tempo and maintenance, repair, and overhaul turnaround times for heavy inspections, interiors, and avionics modifications, especially for popular large-cabin platforms.”
In terms of the 12-month outlook, IADA says, “Demand is solid, especially in super-mid and large jets; U.S. tax expensing drives year-end activity; supply-chain constraints still elongate some refurbishment timelines; financing terms are steady for quality credit.”
For U.S. buyers and sellers, the July 2025 U.S.–EU understanding to preserve tariff-free trade for civil aircraft, engines, and parts “reduces a major uncertainty that had threatened to raise costs or delay cross-border maintenance and completions”
Also, “USTR’s rolling actions in 2025 on China Section 301 tariffs included extending certain exclusions through Aug. 31, 2025, useful for some components and tooling, though coverage is narrow and time-bound. The net effect for business aviation: Headline tariff risk on trans-Atlantic aircraft/parts flows is lower; China-related tariff exposure persists for specific categories of machinery and electronics in supply chains.”
5×5 Trading Founder John Odegard reported, “Our U.S. pipeline is the strongest we’ve seen since 2021, but it’s a more discerning market.”
The IADA vice chair continued, “Buyers want pedigree, programs and operational-ready aircraft. With 100% expensing back, year-end is shaping up to be busy, especially in super-mid and large cabins. Sellers with turnkey, market-ready aircraft stand to benefit the most.
Still, IADA noted, “NBAA’s technical guidance and law firm analyses emphasize that eligibility depends on first-use, placed-in-service timing, on or after Jan. 20, 2025, and satisfying the 50% business-use test under Internal Revenue Code Section 280F, each of which should be carefully documented with operational logs and tax counsel. In short, tax policy is again decisively pro-acquisition, but planning discipline matters.”
However, it’s not all blue skies.
The deal group notes, “European SAF mandates climb through the decade; U.S. incentives remain in flux. Operator cost models and corporate ESG reporting will nudge retrofit and fleet choices, especially for multinational flight departments.”
Other risks include tightening credit, supply chain issues, and “trade policy drift.”
Find the perfect solution for your private aviation needs
Save Time. Buy Confidently.
Receive an apples-to-apples comparison of programs that meet your needs from more than 500 jet card and fractional options covering 65 points of differentiation and over 40,000 data points.
