Jefferies: Used Bizjet Inventory Up 40% YOY
Pricing is still up 25 percent as used business jet inventories have swelled by 40 percent from a year ago, Jefferies reports.
Used aircraft inventories have increased across all aircraft categories but are still below the five-year average.

Inventory of used business jets for sale is up by 40 percent from a year ago and marks a 23 percent increase over the past six months, according to the latest report from analyst Jefferies. Citing Amstat data, Jefferies noted that the percentage of available inventory is still only 3.3 percent of the fleet, well below the five-year average of 5.8 percent. However, this has inched up from the one-year average of 2.8 percent.

Considering only jets less than seven years out of production, inventories have soared by 91 percent while prices rose 25 percent. All segments have contributed to the growing available inventory, with heavy jets increasing by 56 percent. Medium jet inventory climbed by 25 percent from a year ago, while light jet inventory is up 51 percent.

Eighty-four used Cessna Citations are on the market this month, a 50 percent increase from a year ago and led by a nine-unit jump in available CJ3s. However, this is only 2.1 percent of the active CJ3 fleet and one Citation Latitude and no Longitudes are for sale.

Bombardier inventory, meanwhile, saw a 113 percent jump, to 64 units, with Challengers up by 500 percent and Globals rising by 88 percent. There are no Global 7500s for sale.

Gulfstream inventory similarly grew by 108 percent, to 52 units, representing 2.7 percent of the fleet. This is up from 1.3 percent a year ago and is led by a nine-unit increase in G550s. As a side note, Amstat said it has tracked 24 produced G700s thus far, which Jefferies said implies 18 for customers aside from the six flight-test articles.

Embraer Executive Jet inventory is up 138 percent to 31, representing 2.7 percent of the fleet. Phenom light jets drove this increase. Dassault inventories have swelled by 400 percent but only represent 10 units for sale—or the equivalent of 1.9 percent of the fleet.

As for list prices, Cessna and Bombardier used jets each are up by 35 percent; Embraer, up 30 percent, and Dassault Falcon, up 28 percent. The only year-over-year pricing contraction involved Gulfstreams, down 3 percent led by a drop in the G450 and G150.