According to the latest data from JPMorgan Research, pre-owned business jet inventories fell last month, reversing a three-month upward trend, though demand remains “weak.” Inventories decreased to 11.7 percent of in-production business jets, but JPMorgan said they remain elevated and noted that inventories have fallen less than 0.1 percentage point per month on average this year.
Sales transactions of pre-owned business jets and turboprops, as well as turbine helicopters, posted healthy increases from a year ago, according to data released yesterday by business aviation information firm JetNet. From January through October 31, business jet sales transactions climbed by 16 percent, followed by turbine helicopters (up 15.2 percent) and turboprops (up 4.5 percent).
The eye-popping total of 2,750 pre-owned aircraft for sale today is a lot based on historical standards, but it is well below the peak reached a little more than a year ago. The broker community and OEMs monitor the total number of aircraft for sale because it is an important measurement on which to gauge the health of the used aircraft market, but when you scratch beneath the surface you realize that the sky is not falling.
“Elevated used inventory, attractive used pricing and macro uncertainty continue to hold down demand for new business jets,” JPMorgan Equity Research noted in its latest business jet monthly report, issued this morning.
Sales of pre-owned business jets, turboprops and turbine helicopters increased in the first seven months versus the same period last year, though at the same time aircraft prices deflated, according to data released yesterday by JetNet. Business jet inventory showed the largest year-over-year change, dropping 2.8 points to 14.9 percent.
The used aircraft market often synchronizes its pace with the lazy days
The business jet market saw 2.4 percent of the worldwide fleet change hands via resale retail transactions in the second quarter, according to a quarterly pre-owned bizjet market update released this week by Amstat. This is higher than the 2.0-percent figure recorded in the first quarter.
A report released by JetNet on Tuesday shows that the number of pre-owned business jets and turboprops on the market last month fell by more than 7 percent on a year-over-year basis. But inventory as a percentage of in-service aircraft still remains high for business jets at 15.3 percent (2,674 aircraft), and while down 2.1 percent from May 2009 this still indicates a buyerís market for this category.
Recovery in the pre-owned business jet market “remains on track,” but the pickup in the new aircraft market is still “elusive,” JPMorgan noted in its latest business jet monthly report, issued late last week. “Used inventories continued to move downward, consistent with their path over the past 10 months,” said Joseph Nadol III, the firm’s chief aerospace analyst.
A recently released report from JetNet indicates that the pre-owned inventory of business jets and turboprops declined further last month, though the aviation information firm said the market still remains very much a buyer’s realm.