International Aircraft Dealers Association Members Say Global Demand is Still High

First-quarter market report indicates a 35 percent increase in closed deals over 2021.

Tuesday, April 12, 2022 at 05:46 PM ET

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The IADA says that customers have entered into 223 new acquisitions agreements in the first quarter of 2022. [Pilatus Aircraft]

Key Takeaways:

The aircraft market experienced robust growth in Q1 2022, with a 35.2 percent increase in closed deals and nearly double new acquisition agreements compared to the previous year, driven by high global demand and changing corporate perceptions of private jet ownership.
Despite strong buyer willingness to pay above market value, the sector faces significant headwinds including persistent inventory shortages, rising jet prices, historically high insurance premiums, and increasing capital costs.
The market is characterized by a notable influx of first-time buyers and seasoned buyers looking to refresh their fleets, indicating sustained interest despite supply-side challenges.

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In announcing its first-quarter market report Tuesday, the International Aircraft Dealers Association (IADA) said its members reported a 35.2 percent increase in closed deals compared to the first quarter of 2021.

In a statement, the executive director of IADA, Wayne Starling, also shared that customers have entered into 223 new acquisitions agreements this quarter, nearly double the amount of customers that did so at the same time last year.