The stock market, 100% bonus depreciation offset tariffs and geopolitic concerns according to the International Aircraft Dealers Association.
The number of closed deals by members of the International Aircraft Dealers Association increased to 333 in the first quarter of 2026.
That was an increase from 316 completed transactions year over year.
The number of deals for pre-owned private jets that fell apart jumped from 37 to 49 year over year.
However, pricing doesn’t seem to be a key factor.
The number of listings that lowered prices in the quarter fell from 43 in Q1 2025 to 26 in the most recent quarter.
New acquisition agreements increased from 134 to 167 year over year.
Supply chains, tariffs, and international conflicts are providing the biggest headwinds.
A year ago, tariffs were the big concern.
The pace of new aircraft deliveries and the stock market are providing tailwinds.
100% bonus depreciation, as part of the Big Beautiful Bill, was cited as helping boost demand.
The dealers scored the current market at 3.6, with 5 representing the best and 1 the worst.
That’s down slightly from Q4, when IADA dealers called the market a 3.7, but up from 3.5 in Q3 and 3.1 in Q2, and from A1 of 2025.
Sales projection for the next six months is 3.5, flat sequentially and down from 3.7 in Q3 of 2025.
The group described the market as “fundamentally strong.”
It said both performance data and outlook “signaled continued demand outpacing supply and stable pricing across most categories, leading to generally positive expectations for the year ahead.”
Chairman John Odegard said, “The prevailing tone across respondents is one of measured confidence.”
He added, “The business aviation market remains fundamentally healthy, demand continues to outpace supply, values are holding firm, and buyer interest remains broad.”
It’s not all positive.
Odegard noted, “A growing undercurrent of geopolitical and macroeconomic uncertainty is tempering enthusiasm somewhat heading into mid-2026.”
The dealers noted, “inventory levels remain historically tight across nearly all segments, from turboprops through large-cabin jets.”
As usual, not all pre-owned jets are created equal.
“Late-model, well-maintained aircraft, particularly those with clean maintenance histories, continue to command premium pricing with minimal negotiation flexibility,” IADA said.
Eagle Aviation’s Lee Thomas said he considers the market “stable,” adding, “Supply is still pretty low, and demand is still decent and possibly increasing due to security concerns.”
Thomas noted, “Obviously, tariffs and oil may impact this.”
JetAviva’s Michael Barber said, “Many segments of the market still appear to be sellers’ markets coming into the year, and that momentum has continued, particularly for models that remain in active production.”
He continued, “Overall, that has kept pricing elevated across much of the market.”
Barber also expects “some normalization in certain segments as the ability for U.S. buyers to purchase international aircraft without the concern of tariffs returns.”
He says, “With that barrier removed, more international inventory can compete in the U.S. market again, which should help bring additional balance to supply and demand over time.”
Wetzel Aviation’s Bryon Mobley cited “costs of engine overhauls for non-programmed aircraft” as a cause for concern.
West Elk Aviation’s Jonathon Gardner said, “New deliveries are up, and backlogs continue to extend, which constrains the flow of pre-owned inventory.”
He pointed out, “The replacement cycle drives the secondary market — owners sell when they have a new aircraft to transition into, and buyers on the pre-owned side can’t move until that inventory surfaces.”
OEMs had their best year last year in terms of units delivered since 2009, according to the General Aviation Manufacturers Association.
Holstein Aviation’s Shawn Holsetein summed it up.
He said, “In Q1 2026, the business aviation market has continued to transition into a period of stabilized growth despite uncertainty related to tariffs and other geopolitical events.”
He added, “High-quality, late-model aircraft are maintaining firm residual values, bolstered by strong OEM backlogs and the return of favorable tax incentives like 100% bonus depreciation in the United States.”
His conclusion?
“Optimism prevails,” Holstein wrote in his comments about the quarterly update.
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