The preowned business aircraft market is continuing at a feverish pace with the number of completed transactions jumping by 35 percent in the first quarter to 288, according to the International Aircraft Dealers Association's (IADA) first-quarter market report. This compares with 213 transactions a year earlier, the association reported.

“We live in tumultuous times. Despite that, the aviation field continues to show extraordinary strength,” said IADA executive director Wayne Starling. “Global demand is very high.”

IADA members reported a nearly doubling of acquisition agreements to 223 in the first quarter, up from 121 a year earlier. Price dropped only in six cases, compared with 27 a year earlier. IADA reported that 45 deals fell apart in the quarter. Although that number was up from 41 in first-quarter 2021, it was against the backdrop of an increase in the number of agreements.

The association’s members were retained exclusively to sell 155 aircraft in the quarter, down from 157 a year earlier.

Eyeing the volatility of the market as a result of the pandemic, IADA began monthly tracking of preowned business aircraft sales of its members in April 2020 and compiles that data in its market report.

A member survey revealed that current market sentiment was 20 percent more positive in the first quarter than a year earlier, but the six-month outlook is less certain. “While it is a great market for sellers, it is a very challenging market for buyers, to the point of significant buyer frustration and in some cases desperation. This is the main Achilles' heel of the current market,” said Shawn Dinning of Dallas Jet International.

Cody Vanderslice of Textron Aviation agreed that demand remains strong, but added, “It does seem the speed at which we get a listing under [letter of intent] is decreasing. It also seems there are more off-market aircraft being communicated. This indicates we may be seeing the first signs of the market softening a touch.” The next month may provide more insight on that, Vanderslice said.