Steady 2nd Quarter Leads to Guarded Optimism for Rest of Year
IADA’s Preowned Market Report Published
For the next six months, two thirds of members surveyed predict that pricing and demand for large and ultra-long-range bizjets will decline while supply will increase, continuing a trend.”
BOISE, IDAHO, USA, July 29, 2024 /EINPresswire.com/ -- International Aircraft Dealers Association (IADA) members reported a balanced market for preowned business aircraft in the second quarter of 2024. Sales are steady and values of late model aircraft remain strong, according to IADA’s Second Quarter 2024 Market Report.— IADA Executive Director Wayne Starling
“For the next six months, two thirds of members surveyed predict that pricing and demand for large and ultra-long-range bizjets will decline while supply will increase, continuing a trend noted in our last quarterly report,” said IADA Executive Director Wayne Starling. “Most IADA survey respondents anticipate stable demand in the turboprop and light jet segments for the next six months, though opinions vary more for mid-size and larger jets,” he added.
Aircraft Transactions Up
Reported activity in the second quarter of 2024 included an impressive 366 closed deals, up 20 percent, compared to the second quarter of last year. It was the highest number of transactions recorded in a second quarter since the IADA survey was initiated in 2020.
Year-to-date in 2024, the 620 closed deals reported were up 14 percent in volume compared to the first half of 2023, an indicator of a healthy level of activity in a rebalancing marketplace.
However, several macroeconomic factors are contributing to some ongoing uncertainty.
These include geopolitical tensions, the divisive global election cycle, and persistent inflation / interest rate concerns. Most IADA members have been impacted by these headwinds, and still view the global preowned business jet market with guarded optimism.
Demand for preowned business jets has remained resilient yet tempered as more aircraft have come to market. IADA has also seen an increase in transaction times as buyers and sellers take more time to negotiate pre-purchase inspection findings. IADA members look forward to the second half of the year, as their cautiously optimistic outlook continues to define the landscape moving through 2024.
To download the report, go to https://aircraftexchange.com/market-report.
The IADA Market Report is based on both quantitative sales data and the exclusive, on the ground perspective of IADA members, who buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. The organization’s membership and survey participants include IADA-Accredited Dealers, Certified Brokers and IADA-Verified Products and Services members.
Insights from these IADA-Accredited Dealers and IADA-Verified Products and Services Members follow:
Comments from IADA Members
“The market continues to ‘normalize’ driven by increases in supply, higher interest rates, and upcoming election uncertainty. It’s critical for buyers and sellers to work with an IADA certified dealer during this market transition period to ensure they are getting the most up-to-date market intelligence and guidance that they can trust.”
SHAWN HOLSTEIN
HOLSTEIN AVIATION INC. // IADA-ACCREDITED DEALER
“Overall, from what we have monitored, markets still seem to be generally healthy from an inventory and transaction volume perspective. I believe we will see steady activity that will likely persist through the beginning of next year.”
JAMES NORRIS
OMNI AIRCRAFT SALES // IADA-ACCREDITED DEALER
“While there is still solid demand for preowned aircraft, demand by itself doesn’t translate to successful closings. Selling in this market successfully requires accurate pricing and hard work once again.”
CHRIS MEISNER
MEISNER AIRCRAFT // IADA-ACCREDITED DEALER
“While there is more inventory for sale, we still expect a strong Q3 and Q4.”
CAMERON JONES
JONES AVIATION GROUP // IADA-ACCREDITED DEALER
“The market continues to balance back to more normal conditions with available inventory increasing while demand remains strong. It has come down from the prior Covid levels.”
LEE ROHDE
ESSEX AVIATION GROUP INC. // IADA-ACCREDITED DEALER
“The market has clearly calmed down from the post-Covid craziness. But many of the people who finally discovered aircraft ownership during this period are likely to remain. Short of a major financial downturn or a ‘black swan’ event there are lots of reasons to be optimistic about the next few years.”
ALASDAIR WHYTE
CORPORATE JET INVESTOR // IADA-VERIFIED
PRODUCTS AND SERVICES MEMBER
“[The] bubble is deflating, not burst. Those airplanes that rise/rose the most in the pandemic face the largest budget declines. Late model aircraft remain strong due to OEM backlogs.”
CAMERON GOWANS
MENTE GROUP // IADA-ACCREDITED DEALER
“Pricing on aircraft 20 years old and newer will likely not drop to pre-covid levels because of [a] stronger demand base.”
JOSEPH CARFAGNA, JR.
LEADING EDGE AVIATION SOLUTIONS // IADA-ACCREDITED DEALER
“I think we have hit the summer lull early this year. We are all busy but not many transactions have actually occurred over the last few weeks/months. Our buyers have put projects on hold as there appears to be a delta between what a seller will take and what a buyer will offer.”
KYLE WAGMAN
LEADING EDGE AVIATION SOLUTIONS // IADA-ACCREDITED DEALER
“Business aviation continues to show that its value proposition is ‘for real.’ North America has continued to come off its boil, but other international markets are starting to warm up to take advantage of the slack. Utilization numbers are still very strong, with fractional [ownership] making particularly strong gains in that metric. Low time, well-equipped, great-pedigree aircraft are still trading quickly and not easy to find.”
SHAWN DINNING
DALLAS JET INTERNATIONAL // IADA-ACCREDITED DEALER
“The year has been surprisingly more active than anticipated. The ‘wait and see’ mentality appears to be delayed despite it being an election year and interest rates remaining unchanged.”
SCOTT OSHMAN
OSHMAN AVIATION // IADA-ACCREDITED DEALER
“Inventory [is] slowly growing, and some deals are getting done even though the majority of sellers are holding firm and not motivated, while most buyers will only pull the trigger if they find a ‘deal.’”
FRANK JANIK
LEADING EDGE AVIATION SOLUTIONS // IADA-ACCREDITED DEALER
“The move toward balance continues. More supply, slight price softening but continued buyer activity.”
JOHN ODEGARD
5x5 TRADING // IADA-ACCREDITED DEALER
“Seasoned owners are watching the correction take shape, which will ultimately determine when and if they step in to the marketplace to upgrade and/or replace. The ascent that occurred over the past few years has summited, the rate of descent seems manageable and will bring informed buyers back into the space.”
TROY LAWSON
WEST ELK AIRCRAFT // IADA-ACCREDITED DEALER
“The demand for good, clean aircraft will remain stable throughout the year and buyers will be looking for deals! I believe we will see a reasonably strong 4th quarter.”
ANDY TOY
AXIOM AVIATION INC. // IADA-ACCREDITED DEALER
“Jet RVSM intakes post-close have dropped back to pre-pandemic levels after spiking to twice normal volume.”
JOHN CLARK
JET RVSM SERVICES LLC // IADA-VERIFIED
PRODUCTS AND SERVICES MEMBER
“Steady market conditions. Pre-buys are getting more complicated.”
STEPHANIE REUVENI
ACASS CANADA LTD // IADA-ACCREDITED DEALER
“The election may give a few buyers ‘excuses’ to put off purchases until 2025, but the amount of acquisition assignments we currently have suggest the usual ‘wait and see’ isn’t necessarily occurring this time around. Thus far in 2024, the market has fared better than we originally anticipated. The climb of supply has been well received by a very qualified pool of buyers who waited to get past the buying fury of 2022-2023.”
CHAD ANDERSON
JETCRAFT // IADA-ACCREDITED DEALER
“Trading volume in Europe is low; several European jets are now being sold to South America.”
NICOLAS VON MENDE
ATLAS AIR SERVICE AG // IADA-ACCREDITED DEALER
About the International Aircraft Dealers Association
IADA's dealers consist of the top 17 percent of the world's experts who handle 50 percent of used business aircraft sales. IADA-Accredited dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. Ninety-nine percent of IADA dealers do business in North America, 69 percent of dealers operate in Europe, 56 percent are active in Latin America and the Caribbean, 45 percent do business in Asia and the Pacific region, 37 percent work in the Middle East and 33 percent in Africa. IADA also represents a variety of IADA-Verified product and aviation services members that operate with the highest professional standards in the industry. For more info go to International Aircraft Dealers Association | IADA.
About AircraftExchange.com
IADA's AircraftExchange marketing search portal is the only site where every aircraft listed for sale is represented by an IADA-Accredited dealer. AircraftExchange enables users to create a confidential dashboard of business jets for sale, filtered based on their features and amenities, class size, age, and price. Users can browse through data-rich listings for available business aircraft. For more info go to Aircraft For Sale Exclusively by IADA | AircraftExchange.
Jim Gregory for IADA
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