Business Aviation Market Intelligence

Amstat Global Pre-Owned Market Update – Global Sky Quarterly 2022 Q3

Amstat Global Pre-Owned Market Update – Global Sky Quarterly 2022 Q3

According to Andrew Young, General Manager, AMSTAT, the larger aircraft segments of the market continue to see year-over-year growth in transaction activity, and this continues to push the median value metric upwards. Availability in these markets has marginally increased but we remain in a tight market. In the medium and light jet markets, transaction activity has slowed compared to 2021 but remains significantly ahead of historic levels.

Business Jet inventories are up from the start of the year but remain well below historical levels, and transaction activity remains strong with resale retail counts either meeting 2022 levels or at least exceeding historical counts.

Over the past 12 months the median value of Heavy Jets has risen 33% and is up 18% year-to-date. Transaction activity in this segment remains robust with pre-owned transactions in the first three quarters of the year just 4% behind historically high 2021 levels with transaction data for the period still coming in. Although availability in this segment is up 40% year-to-date, it remains 10% below a year ago. In addition, only 4% of the Heavy Jet active fleet is for sale, far below a 10-year average of 8.6%.

Over the past 12 months, the median value of Super-Mid Jets has risen by 53% and this metric is up 31% year-to-date. The positive direction of values is in large part due to the continued momentum in resale transactions, with the first three quarters of 2022 already exceeding the same period in 2021 by 9%. As with the Heavy Jets, pre-owned inventory is up year-to-date (by 63%) but is 6% lower than a year ago. The current number of pre-owned Super-Mid Jets for sale only represents 3.4% of the active fleet versus a 10-year average of 8.3%.

The median value of Medium Jets has risen 23% year-to-date. However, between May and today, this metric declined and then recovered which resulted in a 1% increase over the period. This slowdown is in part due to a 18% drop in pre-owned transactions in the first three quarters of 2022 versus 2021. That said, pre-owned transaction activity this year is a robust 30% ahead of the same period in 2019 (used as a pre-covid baseline). Availability in this segment is up 23% year-to-date but this represents only 4.1% of the fleet versus a 10-year average of 10%.

Year-to-date the short-term median value metric for Light Jets is up 25%. However the rate in increase for this metric has slowed since the summer and has even declined in some months, resulting in a 0% change since July. Transaction activity in this market is 18% below 2022 but 33% ahead of 2019. Availability in this segment is up 21% year-to-date but 5% below a year ago. Pre-owned inventory in this market represents 5% of the fleet, well below a 10-year average of 10.7%.

The median value of Turboprops has risen 12% year-to-date. Unlike the jet segments above, pre-owned transactions in the Turboprop year-to-date are below 2022 (-13%) and 2019 (-4%) levels. For sale inventory in the Turboprop market is up 12% year-to-date, but only 3.3% of the fleet is for sale versus a 10-year average of 7.2%.

Data Source: Amstat

Commentary by Andrew Young

IMPORTANT NOTE: The chart above uses aggregated data. The changes in values this year within individual make and model markets, and for specific serial numbers, may vary to a greater or lesser degree from these trends.