Business jet brokerage Altea is seeing an upward trend in inventory of preowned business jets for sale and consequently expects prices to drop amid headwinds affecting this market segment. The number of preowned jets for sale climbed during 2022, from about 700 at the end of March to nearly 1,175 at year-end, according to Altea partner Jean Sémiramoth. “This is an indicator of a market shift in 2022.”

Factors that are involved in this shift include volatile stock markets, rising interest rates, high energy and commodities prices, inflation, and "subsequently the shadow of an impending economic downturn combined with continued inflation or even stagflation,” he said. Other factors include “continuing trade tensions, geopolitical unrest, plus the end of the 100 percent bonus tax depreciation in the U.S., as well as the rise of environmental concerns and flight shaming.”

Overall, Altea expects to see a cooling and more balanced business jet market later this year. While jet manufacturer backlogs have grown, Altea said some orders are becoming “quietly available…another sign that the market is cooling.” Along with supply chain problems, manufacturers can’t build airplanes quickly and, said Altea partner Andrew Butler, “That is a real advantage and will also help us to avoid the doldrums that we will all be happy to see the back of.”