The International Aircraft Dealers Association (IADA) says it sees a significantly larger market over the next six months for business aviation aircraft.
The association stated in its recently released third-quarter 2023 market report that many of its members did not experience the typical sales slowdown over the summer, with some noting strong transactions and activity. Overall, according to IADA, its members are anticipating a strong fourth quarter.
“The good news is that inventories are expanding, price inflation has slowed if not slightly slipped, and supply chain quirks and bottlenecks are being ironed out industrywide,” said IADA executive director Wayne Starling. “Additionally, MROs and FBOs are expanding to meet the needs of aging fleets. Those factors, coupled with massive new options from fleet buyers, could be signals that supply and demand are rebalancing for a larger post-pandemic marketplace.”
According to IADA, the six-month outlook for the preowned business aircraft market has slipped in the face of “higher interest rates, somewhat softer pricing, and lingering concerns about the potential for an economic recession in the U.S.” The Q3 report found that there were 309 used aircraft deals closed in the quarter with 257 aircraft sales under contract. Of those, IADA reported that 66 were sold below asking price.
For year-to-date numbers, IADA dealers closed 853 transactions through September. In 2022, 929 transactions were completed over the same time period. As for new acquisition agreements, 410 were signed through Q3 compared to 519 through the third quarter of 2022. So far this year, 191 aircraft have been sold below asking price compared to more than 59 in the first nine months last year.
“Generally, pricing is expected to reflect slight decreases, and supply for sale is predicted to be slightly increased across all categories,” IADA said. “Demand projections are expected to be stable for turboprops and light jets, with stable to slightly decreased demand for mid- and larger-size jets.”
IADA gathers data for its quarterly reports via a survey sent to more than 1,000 members, including association-accredited dealers and their certified brokers, OEMs, and IADA products and services members. IADA reports that its dealers handle an estimated 50 percent of used business aircraft sales and average more than 1,300 transactions and $11.8 billion in volume annually.