International Aircraft Dealers Association (IADA) members reported that their preowned business aircraft transactions dropped from 288 in the first three months of 2022 to 239 in the most recent quarter, while the number of aircraft under contract fell from 248 to 197. Even so, IADA members participating in the association’s global perception survey have indicated their expectations have increased for the next six months, compared with where they were in the fourth quarter.
These expectations come as inventory levels start to replenish and pricing stabilizes, suggesting a “rebalancing” of the market, the organization said.
More than 60 percent of respondents anticipate a “slight increase” in inventory across all models, while the vast majority expect pricing to remain stable or slightly decrease. The market was described as “calmer” and IADA dealer Bryon Mobley of Wetzel Aviation said: “The feeding frenzy is over. The market has slowed to a balanced pace, yet with lots of inquiries and activity.”
In the first quarter, more and a higher percentage of transactions (52) experienced lowered pricing than in the past two years. Only six transactions in the first quarter of 2022 and 27 in 2021 saw lowered pricing.
“Results from IADA’s first-quarter 2023 survey suggest that marketplace forces are at work as expected,” the association maintained. Further, while 2023 activity—aircraft sales, flight activity, and MRO demand—has slowed from the record 2022 levels, IADA stressed the business aviation market remains vibrant.
“There is evidence that demand and supply forces are rebalancing, with less frenetic activity, more realistic pricing, and a slow but steady buildup of available inventory,” said IADA chair Zipporah Marmor, who is v-p of transactions for ACASS in Montreal. “Although specific low-time aircraft with attractive pedigrees continue to attract top-dollar, the overall market has begun to downshift from a peak characterized by accelerating prices and strong residual values.”
IADA executive director Wayne Starling noted bolstering demand in the two-plus years of backlogs at the OEMs, which are “straining to accelerate deliveries in the face of slowly recovering supply chains.”
