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

Verified

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

Key Takeaways:

The business aircraft market experienced significant growth in Q1 2022, with IADA members reporting a 35.2% increase in closed deals and nearly double new acquisition agreements compared to the previous year, driven by high global demand.
This strong demand continues to face inventory constraints, leading to rising aircraft prices for both new and used jets, though these supply issues may soften later in the year.
Key challenges for the market include sharply increasing insurance premiums (partially due to geopolitical conflicts), the rising cost of capital, and longer maintenance inspection times.
Despite these headwinds, the market is characterized by a surge in first-time buyers, renewed corporate interest in jet ownership due to changing optics, and a willingness among buyers to pay above market value up to a certain ceiling.

See a mistake? Contact us.

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.