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IADA: Market Returning to Pre-COVID Conditions

The 134 new second quarter customer acquisition agreements represented 40 percent less activity than during the first quarter, which saw 223 deals.

The announcement at AirVenture gained support from members who said collaboration and learning across the coalition would benefit pilots in individual groups. [File Photo: Adobe Stock]
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Key Takeaways:

  • The business aircraft market is returning to pre-COVID-19 conditions, with deal activity slowing significantly in Q2 compared to Q1, and prices stabilizing after peaking earlier in the year.
  • Buyers are becoming more cautious due to macroeconomic uncertainty (inflation, recession talks), yet low aircraft inventory continues to constrain transaction volume.
  • Despite a more negative sentiment from members for the near future, strong OEM backlogs and quicker deal closures (driven by financing or tax incentives) suggest a potentially robust end to the year.
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The International Aircraft Dealers Association (IADA) presented its second-quarter market report this week. The overall sentiment throughout was that, even though demand for business aircraft remained strong, the market was returning slowly to pre-COVID-19 conditions.

IADA is the global collective of the world’s only accredited dealers and certified brokers, all major OEMs, and 75 industry-leading products and services providers, whose members buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined, according to the association. IADA’s executive director, Wayne Starling, pointed out during the company’s market update this week that although IADA dealers make up 15 percent of all the dealers worldwide, they complete 46 percent of all sales of used aircraft. In fact, IADA’s dealers and brokers average more than 1,100 transactions or $10 billion in volume per year.

Michael Wildes

Michael Wildes holds a master’s degree in Logistics & Supply Chain Management, and a bachelor’s degree in Aeronautical Science, both from Embry-Riddle Aeronautical University. Previously, he worked at the university’s flight department as a Flight Check Airman, Assistant Training Manager, and Quality Assurance Mentor. He holds MEI, CFI & CFII ratings. Follow Michael on Twitter @Captainwildes.

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