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Sun, Jan 22, 2023

2022 Sees 2% Increase in Business Aircraft Sales

IADA Report Shows Recovering Industry, But Expects Stabilization

The business aircraft market continued its recovery in 2022, according to this year's International Aircraft Dealers Association (IADA) report.

IADA accredited dealers and certified brokers reported 1,399 used aircraft sales, accounting for $9.3 billion throughout 2022. That makes for an average transaction around $8 million a piece. IADA notes once again that December turned out surprisingly busy (perhaps aided by those year-end tax break necessities), with 259 resales reported. That's double the average monthly volume, and 4 more than 2021's December total. 

IADA Executive Director Wayne Starling was careful to moderate expectations for the industry. “Looking forward, IADA members have slightly more modest expectations than they did a year ago for the aircraft resale market over the next six-months,” said Starling. “Based on our perspective survey of IADA members, the more moderate six-month resale projections also hold true for the aircraft finance and aircraft leasing market."

Austin Bass, Market Research Manager for dealer OgaraJets in Atlanta, echoed the sentiment. “Over the next six months, I believe we will continue to see market normalization. I anticipate a more balanced market, with the majority of aircraft beginning to depreciate at slightly higher than pre-pandemic levels,” Bass added, “Pricing for high-time and legacy aircraft will likely fall the most, while pricing for newly delivered aircraft will likely benefit from OEM backlogs.”

While 2020 and beyond have been quite kind to the bizjet industry overall, it may be wise to set expectations to a modest bump over 2019 numbers. A complicated, sometimes erratic supply chain, difficulties in acquiring strategic materials from the East, and looming economic woes on the horizon could all hamper an expected boom in business aviation. IADA members noted that the next 6 months should bring a slight increase in inventory, with stable outlooks for supply should things remain steady as they are today. 

Johnny Foster, President of OgaraJets, said that his firm still has plenty of NOS heading into 2023. "While inventories rose slightly over Q3/Q4, OGARA tracked four consecutive declining weeks in December. Our Q1 pipeline remains flush with a handful of “left-over” ‘22 transactions as well as several new listings and acquisition engagements. Today’s market still very much favors the seller; however, we do expect to see a slow building of supply as we move into Q2 and summer, creating some softening in prices. That said, we do not predict a significant building of supply nor a significant dilution of prices."

FMI: www.iada.aero

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