International Aircraft Dealers Association (IADA) members expect an ongoing shift toward a more balanced market throughout 2023. Members also reported an uptick in private aircraft resale expectations for the next six months. Both results were reported in the IADA quarterly market report.
After the exceptionally tight supply conditions of the last 2+ years, aircraft transaction experts are continuing to expect a broad replenishment of pre-owned inventory. Demand is expected to be stable.
“IADA members, who lead the business aircraft resale marketplace, indicated a continuing normalization of the balance between buyers and sellers, with a nearly even split between which group is driving the market,” said IADA Executive Director Wayne Starling. “Their view of the market is cautiously optimistic, particularly given the vagaries of the global economy,” he added.
Strong Pricing for Some Makes and Right Pedigree
IADA members have also reported that aircraft prices and valuations have come off their 2022 peaks, but they still see reasonably strong pricing for preferred makes and models with the right pedigree. Members are also seeing good activity in the long-range heavy jet sector, but have experienced longer times to close with a slight reduction in the number of transactions.
The report also notes that looking forward, aircraft resale prices for the next six months are projected to decrease slightly, across turboprops, light jets, midsize jets and large jets.
“More inventory coming to market daily, better more balanced buyer / seller due diligence and transaction terms and prices are going down, but at a healthy balanced market rate. We do not see a bubble bursting or any drastic price fall coming barring unforeseen major economic issues,” said Josh Mesinger, of Mesinger Jet Sales, Boulder, CO.
“Overall buying interest is still present, however, buyers are now more concerned about overall value they are getting from the purchase of an aircraft. Aircraft that are equipped well, have lower time, and great pedigrees are still getting a lot of love,” said James Norris of Omni Aircraft Sales.
The Perspective Survey is sent out to over 1,000 IADA members, made up of IADA Accredited Dealers and their Certified Brokers, OEMs, and IADA Products and Services Members. IADA Accredited Dealers and their Certified Brokers are involved in both new and pre-owned aircraft sales. In the first half of 2023, IADA dealers closed 542 deals, compared to 598 in the first half of 2022.