Last year “should mark a bottom” for the business jet market, but the path of recovery is “unclear,” according to J.P.Morgan’s latest business jet monthly report. “We estimate that there were about 650 business jet deliveries last year, which would represent a 43-percent decline over five years. Deliveries in 2014 should be up–we estimate by about 10 percent–with help from new and upgraded platforms,” it noted.
J. P. Morgan
According to the latest business jet market update from J.P.Morgan, recent data shows further weakness in the pre-owned business jet market. Used inventory rose to its highest level since late last year, while pricing showed another sequential decline, the firm said. Business jet flying bounced back, however, providing a glimmer of hope.
“Demand for business jets is far from robust, but at the margin some developments suggest improvement,” J.P.Morgan aerospace analysts said in their latest business jet monthly update, released on Tuesday.
The pre-owned business jet market showed “incremental weakness” last month, according to the latest business jet monthly report from J.P.Morgan North American Equity Research. “A single month does not make a trend, but May used-market data, including a sequential increase in inventory by 0.4 percentage points and 3.6-percent decline in pricing not seen since the first half of 2009, suggest that business jet demand will remain weak,” it said.
The business jet market remains highly mixed as it continues on its recovery path, according to the latest business jet monthly report from J.P.Morgan North American Equity Research. Large-cabin jets and an improving pre-owned market are helping the recovery, while light jets and lower flight activity are acting as drags.
“New business jet demand remains weak, especially at the small end, but there have been intermittent signs of recovery,” says J.P.Morgan in its latest business jet market report. However, the higher end of the market remains strong while the lower end is still weaker.
Backlog for new business jets remains stable, ending 2012 at about $40 billion, which J.P.Morgan says is consistent with each of the last two years but still down more than 50 percent from the peak in 2008. “We estimate that half of this backlog is attributable to the G650 and the Global [series],” it noted.
J.P. Morgan’s latest business jet report indicates “evidence of stabilization” in the business jet market “but no improvement.” According to the report, pre-owned business jet inventories remain at record highs–staying at about 14.5 percent of the in-service fleet for the fifth consecutive month–but have not gotten much worse. Pre-owned aircraft prices have continued “a steady downward march toward supply-demand equilibrium,” noted J.P.
Data from a J.P. Morgan business jet report released on Tuesday indicates "evidence of stabilization" in the business jet market "but no improvement." According to the report, pre-owned business jet inventories remain at record highs–staying at about 14.5 percent of the in-service fleet for the fifth consecutive month–but have not gotten much worse. Large-cabin and light jet inventories increased slightly, while midsize jets eased a bit.
According to JP Morgan Global Equity Research, pre-owned business jet inventories in June remained stable at 14.4 percent of the active fleet, “a further sign of stabilization at this very high level.” Used inventories of Cessna, Embraer and Hawker Beechcraft jets decreased, according to the report, “while other OEMs saw inventories rise.” Of the 23 aircraft models tracked by JP Morgan, 12 had higher inventories, 10 were lower and one was flat
Pre-owned business jet inventories are stabilizing, but recovery of the business aircraft industry “still looks far off,” according to a recently released report from J.P. Morgan Research. The investment research firm said pre-owned inventories remained flat last month at 14.4 percent, marking the second consecutive month of status quo after rising for 14 months.
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