The sale of business jets ended on a high note in 2022 but don’t expect that climb to continue, say the senior leaders of the International Aircraft Dealers Association (IADA).
Sales by the Numbers
The Fourth Quarter IADA Market Report for accredited dealers and certified brokers reported 1,399 used aircraft sales transactions that closed in 2022, which is a 2 percent increase year over year from 2021, which saw sales of 1,370 jets.
IADA adds that the resale volume represents $9.3 billion, or roughly $8 million per transaction, with December being the busiest month of the year, with 259 sales reported.
While it was nice to end the year on a high note, industry officials predict the market will likely level out over the first half of 2023.
IADA executive director Wayne Starling reported IADA members “have slightly more modest expectations than they did a year ago for the aircraft resales market over the next six months.”
Austin Bass, market research manager for accredited dealer OgaraJets in Atlanta, concurred, stating, “Over the next six months, I believe we will continue to see market normalization. I anticipate a more balanced market, with the majority of aircraft beginning to depreciate at slightly higher than pre-pandemic levels,” Bass added, “Pricing for high-time and legacy aircraft will likely fall the most, while pricing for newly delivered aircraft will likely benefit from OEM backlogs.”
IADA members predict that the next six months should bring a slight increase in inventory and stable outlooks for supply for all business aircraft segments, including turboprops, light jets, mid-size jets, and large and ultralong-range business jets.
IADA is a professional trade association formed more than 30 years ago to promote the growth and public understanding of the aircraft resale industry. IADA’s dealers consist of the top 12 percent of the world’s experts who handle 46 percent of used business aircraft sales.