Q1 2024 Sees Spike in Preowned Aircraft

The first quarter of 2024 has seen a notable uptick in the sales of preowned business aircraft, sparking continued optimism in the market, as reported by the International Aircraft Dealers Association (IADA). The association's latest market report highlights a robust start to the year, with 253 resale transactions recorded in the first quarter, showing an increase from 239 during the same period in 2023. Additionally, there were 248 aircraft under contract by the end of the first quarter, up from 206 at the close of the first quarter the previous year.

The growth in transactions is seen across several aircraft categories, with particularly strong interest in large and ultra-long-range jets. This category is expected to see some price adjustments and a rise in inventory levels over the next six months, according to insights from IADA members. The overall sentiment reflects a cautious yet positive outlook for the near future, despite potential market uncertainties due to regional unrest and the upcoming U.S. presidential election.

Phil Winters, Vice President of Aircraft Sales and Charter Management for Western Aircraft and IADA Chairman, expressed satisfaction with the market's performance. "I'm happy to report that the first quarter proved to be more active than we had expected," he said. The projections for the next six months suggest a continuation of this trend, with a healthy balance of supply and demand in the market.

Wayne Starling, IADA Executive Director, pointed out that the responses from the quarterly member survey indicate a significant anticipation of change in the high-end segment of the market. "About three-quarters of the IADA respondents believe that Large and Ultra-Long-Range Jet resale pricing will fall, and that inventories will rise over the next six months," Starling noted, emphasizing that the most pronounced changes are expected at the top of the market.

This quarter's results also reflect a market rebalancing after the surge in activity following the COVID-19 pandemic, which had previously drained available inventory and driven up transaction prices. With fresh inventory continuing to enter the market and demand stabilizing, the preowned aircraft market is positioned to maintain robust activity levels, supported by both historical data and current trends. The IADA continues to play a critical role in providing data-driven insights and fostering transparency in the preowned aircraft market, ensuring stakeholders are well-informed and prepared for future developments.

FMI: IADA.aero