The post-COVID pre-owned aircraft markets have seemed somewhat tumultuous. However, some signs of positivity are peaking through the overcast. According to the International Aircraft Dealers Association (IADA), Q1 2024 ended with good news; 253 resale transactions occurred. Up from 239 in Q1 2023. IADA’s Q1 report shows the pre-owned market to be objectively healthy, “with numerous signs of rebalancing after a heated sales climate.”
Phil Winters, IADA chairman and vice president of aircraft sales at Western Aircraft, reports that “the first quarter proved to be more active than we had expected.”
Expectations for the rest of the year are looking strong, too. Winters continued, “The six-month projections for sales, demand, willingness to inventory and supply all continue the cautiously optimistic trends we saw in the fourth quarter of 2023, despite regional unrest and the uncertainties of a U.S. presidential election.”
Along with their monthly transaction and activity reports, IADA members provide some color commentary to add context and clarity. A synopsis of this commentary shows the following:
- Activity is normalizing
- Expectation of pricing stability with inflationary increases
- March proved to be an extremely active
- marketplace
- Lower-time aircraft are in good demand, while older, high-time aircraft lose value
- The market is resetting
- Election, finance rates, and tax benefit uncertainty are making buyers cautious
- Feeling good about the pre-owned market staying robust and active for the year
- Demand for excellent pedigree aircraft is good, and pricing changes are reflective of predictable depreciation rates
- Prices remain strong, and transaction time is slowing
Around half of the IADA members look for prices and inventories to stabilize in pre-owned turboprop aircraft, a typically more stable segment.
Phil Winters concluded by reporting, “In the turboprop and light jet markets, inventory levels have been increasing over the past twelve months, but the number of transactions has also increased in that time frame, resulting in a slight decrease in prices. However, the total months’ supply of inventory has remained stable, suggesting a balance of supply and demand.”
This positive report for Q1 and the outlook of stability from across the marketplace is great news.
Fly safe out there.
