Falling off from a 2022 high, experts are predicting tighter conditions for aircraft sales in 2023, as the preowned business jet market is “rebalancing.”
In its first quarter report, the International Aircraft Dealers Association (IADA)—a trade association that promotes the growth and public understanding of the aircraft resale industry— noted that its members are optimistic about the next six months of the business aircraft market compared with the fourth quarter of 2022.
IADA’s dealers consist of the top 12 percent of the world’s experts who handle 46 percent of used business aircraft sales.
Results from IADA’s first quarter report show IADA accredited dealers closed 239 transactions, compared with 288 in the same period of 2022, and 213 in the first quarter of 2021.
Additionally, IADA dealers ended quarter one with 197 aircraft under contract, compared to 259 a year ago, and 248 in the first quarter of 2021. According to IADA, results from its first quarter survey suggest that the market is rebalancing with a return to more rational pricing and valuations with continuing customer interest.
“Even though macroeconomic forces, geopolitical tensions, and the latest banking crises flood the headlines, customers appear to be little swayed from their interest in buying, selling and flying business aircraft. While 2023 activity levels—aircraft sales, flight activity, MRO shop demand—have generally slipped back from record highs in 2022, the market for business aviation products and services remains vibrant,” IADA noted in a press release.
Chad Anderson, CEO of IADA-accredited dealer Jetcraft, said he was surprised by the number of acquisitions confirmed in 2023. He predicted that the early part of 2023 would be a bit slower, but the latter part of 2023 is looking even more active.
Byron Mobley, president of Wetzel Aviation, Inc., noted the “feeding frenzy is over. The market has slowed to a balanced pace, yet with lots of inquiries and activity. Inventory is limited, but not like last year.”
“Our organization foresees a continuation of relatively tight market conditions through 2023, driven by customers who cannot or will not wait two or more years to receive their next aircraft,” said IADA executive director Wayne Starling.