J.P. Morgan: Used Bizjet Prices Show Gains

 - April 17, 2014, 11:02 AM

Used business jet prices saw their strongest month-over-month gain in more than a year last month, according to J.P. Morgan’s North America Equity Research. Statistics released yesterday in the company’s April Business Jet Monthly report show the used business jet market showed a 1.9-percent rise, only the second sequential increase since the start of last year and a trend the company views as an indicator that stronger new jet demand is approaching.

Pre-owned inventory of in-production aircraft for sale remained flat since January at 8.9 percent, with the analyst noting that declines in available light and heavy jets were offset by an increase in medium-cabin aircraft inventory. While average asking price rose by 1.9 percent month-over-month, pricing was still down nearly 10 percent year-over-year. Large-cabin aircraft, particularly Gulfstreams, drove the price climb, while light jets posted their fifth price gain in the past six months.

In the report, the company also noted that February’s flight operations grew by 3.5 percent over the previous year. The three-month moving average growth has now reached 5.8 percent, its best since spring 2011.