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 private aircraft market experienced robust growth in Q1, with IADA members reporting a 35.2% increase in closed deals and nearly double the new acquisition agreements compared to the previous year, driven by high global demand.
Despite strong demand, the market faces significant challenges including persistent inventory shortages, rising insurance premiums (partly due to geopolitical conflicts), increased cost of capital, and longer maintenance times.
Key trends include a surge in first-time buyers, seasoned buyers refreshing fleets, a more favorable corporate view of jet ownership, and customers willing to pay substantially above market value, albeit with a new, higher price ceiling now appearing.

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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.