Global Pre-Owned Market Update – Q1 2024

This article is extracted from the most recent edition of The Asian Sky Quarterly.
To read the full article, please download our Asian Sky Quarterly Q1 2024 Report.

Background on Respondents

AMSTAT has provided an update on the preowned business aircraft market using insights from their Premier+ and Aircraft Valuation Tool services. It is important to note that the data for Q1 2024 is still being collected by AMSTAT, and while most of the transaction information has been gathered, the final count is expected to increase slightly once all data is accounted for. In Q1 2024, there was a 2% decrease in transactions compared to Q1 2023, and the current figures are 11% below the five-year average. The inventory of preowned aircraft has risen by 32% compared to last year and is approaching the 10-year average. With an increased supply and a decrease in demand, the market is experiencing a decline in aircraft values. The median value of business aircraft has decreased by 15% from Q1 2023 and by 9% since the beginning of the year.

Note:

1. September 2024 data not included.
2. 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.