Inventories of used aircraft appear to be growing as the overall market returns to a state of balance in which sellers and buyers have roughly equal influence, according to the International Aircraft Dealers Association. This represents a significant shift from the past year or so.
In its second-quarter report released Tuesday, the IADA said market conditions and the near-term outlook for business aircraft sales, leasing, and financing have improved compared with the first quarter. Following “exceptionally tight” supply conditions spanning more than two years, the group said, market watchers anticipate a general, favorable loosening.
“Indications are that customer interest remains strong, with plentiful inquiries,” the IADA said in the report. “Macroeconomic and geopolitical factors aside, the current market and near-term sales outlook for business aircraft and related products and services is solid.”
For quarterly reports, the group surveys its more than 1,000 members, including dealers, brokers, OEMs, and providers of products and services. Members share their assessments of current and projected market conditions, and the results are aggregated on a scale of 1 to 5, with 5 representing the best conditions ever and 1 reflecting the worst.
Respondents said their outlook regarding the business aircraft sales market improved to an average score of 3.8 compared with 3.7 during last year’s second quarter. Their projection for business aircraft sales over the next six months averaged 3.6, up from 3.3, and their forecast for the business aircraft financing and leasing market rose to 3.3 from 2.7. The group projected 3.3 for the business aircraft insurance market, a new measure not taken during the same period last year.
Overall, the message from IADA officials during a live presentation of the report was that buyers’ options have broadened, encouraging them to spend more time shopping for aircraft with the features they want while feeling somewhat less pressure to purchase whatever is available.
Zipporah Marmor, IADA’s chairperson, said aircraft shoppers clearly feel less harried than they did a year ago. As a result, Marmor said “deals are taking a little bit longer, but we are leaning toward that balanced market.”