Andrew Young, AMSTAT General Manager said, “Earlier in the year we could say that the steady reduction in business aircraft median values since early 2023 and increased preowned market choices seems to have spurred buyer interest across all market segments. However, as the year has progressed while overall transaction activity is up, the demand year-over-year has been greater in the Heavy and Super-Mid Jet segments while it seems to have stalled in the Medium Jet, Light Jet, and Turboprop segments.”
AMSTAT has released an update on the preowned business aircraft market, utilizing data from their Premier+ and Aircraft Valuation Tool services. Year-to-date (YTD) 2024, transactions increased by 7% compared to the same period in 2023, a level 1% ahead of the five-year average for the first 8 months of each year. The inventory of preowned aircraft rose by 18% year-over-year, and the percentage of the fleet for sale (8.3%) now exceeds the 10-year average (7.8%). Despite good transaction activity the median value of preowned aircraft has dropped 13% since the start of the year.
Note:
- September 2024 data not included.
- September 2024 data not included.
Year-over-year, the median value of preowned Heavy Jets has dropped by 10%, with an 8% decrease since the beginning of the year. This market segment has seen the smallest year-over-year decline in median value of all the segments reported on. YTD 2024, Heavy Jet resale retail transactions increased by 5% from the same period in 2023, and exceeding the five-year average for the same eight months by 3%. The availability of preowned Heavy Jets has risen by 20% year-over-year, with 7% of the active fleet on the market, slightly below the 10-year average of 8%. The preowned Heavy Jet market is seeing continued demand, with increasing inventory offering buyers more choices at reduced median values.
The median value of preowned Super-Mid Jets has declined by 21% year-over-year and is down 15% year-to-date. Of all the business aircraft segments, the Super-Mids have experienced the largest year-over-year decline in the median value metric. Transaction activity YTD was 19% higher than the same period in 2023 and 8% ahead of the 8 months 5-year average. The availability of preowned Super-Mid Jets has surged by 46% (from 194 to 284 units) year-over-year and 44% since the beginning of the year. Currently, 8% of the Super-Mid Jet fleet is listed for resale, ahead of the 10-year average of 7%. The preowned Super-Mid Jet market is currently characterized by sustained higher-than-average transactions, a growing inventory that has seen year-over-year growth ahead of any of its peers, and persistently declining median values.
The median value of preowned Medium Jets has decreased by 17% compared to last year and has dropped by 12% since the beginning of the year. YTD, the number of preowned transactions was 5% lower than the same period in 2023 and 21% below the five-year average for the period. The Medium Jet and Light Jet segments both saw fewer preowned transactions year-over-year and when compared to the5-year average for the first eight months of each year. The availability of Medium Jets has increased by 9% year-over-year, with 8% of the fleet currently on the market, slightly below the 10-year average of 9%. In summary, the preowned Medium Jet market has seen slightly slower YTD transaction activity in 2024 versus 2023, growing inventory levels, and a continued downward trend in median values.
In the preowned light jet segment, the median value has notably decreased by 17% year-over-year and by 18% year-to-date. Resale transactions YTD were 5% below the same period in 2023 and 5% below the 5-year average for the same period. The available inventory has risen by 24% year-over-year, with 8% of the fleet currently for sale, which is below the 10-year average of 10%. In summary, the preowned Light Jet market joined the Medium Jet segment as the is the only preowned business jet markets that saw fewer transactions in the eight months of 2024 compared to 2023. This, coupled with increasing increase in inventory has continued to put downward pressure on values.
The median value of preowned Turboprops has decreased by 20% year-over-year and by 16% year-to-date. YTD, preowned transactions were 4% ahead of the same period in 2023 and effectively even with the 5-year average for the first 8 months of each year. Preowned inventory is up 24% year-over-year and 13% year-to-date. Currently, 5% of the fleet is for sale, compared to the 10-year average of 7%. So, in the preowned Turboprop market transaction activity appears to have slowed, inventory continues to go up, and values continue to decline.
Data Source: AMSTAT
Commentary by Andrew Young