Jefferies: Used Jet Inventory Rises along with Pricing

 - March 20, 2023, 1:02 PM
Preowned heavy jets such as the Gulfstream G550 saw their inventories increase over the past year, while their prices rose as well. (Photo: Barry Ambrose/AIN)

The preowned business jet inventory is continuing to rise, according to the latest data from Jefferies Equity Research. In its latest release, the industry analyst noted the number of jets for sale has increased by 53 percent over the previous year and by 29 percent over the past six months. In March 2022, there were 578 available aircraft—a near-record low—but that number has grown to 883 jets on the market. Inventory represents 3.5 percent of the in-service fleet, still well below the five-year average of 5.7 percent.

The increase was observed across all segments, led by heavy jets, with that inventory climbing by 72 percent from a year ago, followed by medium jets (up 62 percent) and light jets (up 38 percent). Among jet types in production in 2015 or later, the number on market has risen by 123 percent, while pricing has increased by 22 percent year-over-year.

Bombardier aircraft pricing rose by 25 percent from last March to an average of $16.3 million, with Global pricing increasing by 26 percent, Challengers by 18 percent, and Learjets by 94 percent. Cessna Citation average listing prices ascended 29 percent, while Dassault and Embraer were each up by 28 percent. Gulfstream saw a modest pricing improvement to an average of $21.6 million, paced by the G450 (up 32 percent) and the G550 (up 18 percent).