Demand for preowned business aircraft was up 24 percent as the fourth quarter began, driven in part by softening prices, according to aircraft market and evaluation specialist Asset Insight’s third-quarter AI2 Market Report, which looks at the values of every production year for modern business aircraft models. The maintenance analytics encompasses 96 fixed-wing models and 1,752 aircraft listed for sale.
Asset Insight measures demand based on days on market and percent of fleet for sale. Under its metrics, demand increased across all categories quarter-over-quarter—turboprops jumped 42 percent, followed by small jets at 33 percent, midsize jets at 29 percent, and large-cabin jets at 12 percent.
Meanwhile, prices have been falling—by an average of 3.9 percent year-to-date. The only exception is midsize jets, which are seeing a 10.5 percent rise thus far this year, though primarily in the first half of the year as prices actually fell slightly in the third quarter. Large-cabin jet prices ticked up 6.6 percent in the past three months, but are still down by 7.6 percent year-to-date.
The quality of the for-sale fleet improved in the third quarter and in tandem so did the maintenance exposure. Asset Insight reported that indicators are pointing to a continued decline in prices in the fourth quarter.
“We are expecting to see a strong year-end close for preowned business aircraft as demand continues to increase and prices are expected to decline,” said Asset Insight president Tony Kioussis. “Buyers and sellers of large and medium jets are even closer in their pricing expectations, and with very good aircraft quality, activity should be brisk.”