JPMorgan: Bizjet Market Lifting, but Not Uniformly
The recovery in the business jet market continues but is still a bit uneven, according to the JPMorgan monthly business jet report released this morning. Pre-owned jet inventory of in-production models fell to 11.9 percent last month–the first time it has dipped below 12 percent since October 2008–but it did not do so uniformly. Midsize and large-cabin jet inventories decreased, while the supply of light jets increased slightly. Pre-owned pricing inched up by a half percent last month, but only due to a firming up in the large-cabin jet segment. Prices for light and midsize jets decreased by around 2 percent, JPMorgan said. “This data is consistent with the fact that large-cabin demand has held up far better than small and medium,” JPMorgan aerospace analyst Joseph Nadol III noted. Meanwhile, business jet flight operations saw another double-digit year-over-year increase of 12.5 percent in May, though this was down from the year-over-year increases of 19.1 percent in April and 24.4 percent in March. “The recovery in bizjet flight ops continues to track far behind the one in large commercial air traffic,” the firm added.