International Aircraft Dealers Association (IADA) members have reported an uptick in private aircraft resale expectations for the next six months, as noted in the organization’s second quarter 2023 market report.
There was an upswing in projections for the next six months compared to the preceding quarter and second quarter of 2022.
“IADA members, who lead the business aircraft resale marketplace, indicated a continuing normalization of the balance between buyers and sellers, with a nearly even split between which group is driving the market,” said IADA executive director Wayne Starling. “Their view of the market is cautiously optimistic, particularly given the vagaries of the global economy.”
Perspectives and data
In the first half of 2023, IADA dealers closed 542 deals, compared to 598 in the first half of 2022, a truly exceptional period in the resale industry. Looking forward, aircraft resale prices for the next six months are projected to decrease slightly, across turboprops, light jets, midsize jets and large jets.
IADA members expect slight increases in aircraft supply for sale, also across all categories, with a stable willingness among dealers to inventory aircraft for sale. Demand is expected to be stable.
Based on IADA’s second quarter 2023 member survey, and sales data provided by the network, respondents expect an ongoing shift toward a more balanced market throughout 2023. By recent historical measures, new aircraft manufacturer backlogs remain strong, but talent shortages and supply chain issues are constraining the ramp-up of production rates.
Strong pricing
IADA members have also reported that aircraft prices and valuations have come off their 2022 peaks, but they still see reasonably strong pricing for preferred makes and models with the right pedigree. Members are also seeing good activity in the long-range heavy jet sector, but have experienced longer times to close with a slight reduction in the number of transactions.
There are concerns within the community over the collapse of a few of the charter / fractional providers, but the overall market outlook for preowned business aircraft continues to be broadly favourable for the foreseeable future.
To download the report go to https://aircraftexchange.com/market-report
