IADA: BizJet Market Spooling Up, But Lower Inventory Puts Pressure on Pricing

The second quarter market report from the International Aircraft Dealers Association indicates that the used business aircraft market has been climbing as the economy improves. However, for sale inventory for late model private aircraft is tight, placing upward tension on prices.

Used business jet sales are spooling up for IADA dealers, who closed 320 preowned aircraft sales transactions in the second quarter of 2021, versus 211 in the first quarter. Another 315 aircraft ended the quarter under contract to close in the next few months, compared to 246 in the first quarter. The data is included in the second quarter 2021 IADA Market Report, released today.

Second Quarter Trajectory Continues

“IADA members experienced success during the pandemic and now are experiencing accelerating momentum. The second quarter continued the upward trajectory from the first quarter,” said IADA Executive Director Wayne Starling. “In fact, the only negative on the horizon is that there is a shortfall of inventory. We have buyers with funds to purchase, but demand for late model aircraft with attractive configurations exceeds supply, which could increase pressure on prices and lengthen transactions.”

For instance, while some industry reports show inventory of used aircraft is around seven percent of the fleet, in reality only about three to four are newer late model quality aircraft. About one half of those are located internationally, and a high percentage are located in China.

"Lower inventories and upward price pressures reinforce the importance of selecting the most professional aircraft sales team to handle both acquisitions and sales transactions," added Starling. "As the market shifts, it is crucial to pick advisors that are at the top of their disciplines."

By the Numbers

During the second quarter of 2021, the IADA Market Report indicated IADA-accredited dealers closed 320 aircraft transactions, had 315 aircraft under contract, and executed 175 acquisition agreements. IADA dealers were exclusively retained to sell 135 aircraft, and transaction prices were lowered on only 11 aircraft, while 38 transactions fell apart for one reason or another.

This report provides actual sales data from the IADA accredited dealer network. In addition, the report surveys the outlook of nearly 900 members, including accredited dealers, their certified brokers and products and services members. Together, they provide a reliable perspective on the current state of the industry. To download the full report, go to https://aircraftexchange.com/market-report