IADA Market Report – Third Quarter 2022

IADA is proud to present its Third Quarter Market Report. The IADA Market Report has quickly become an essential tool for anyone interested in the business aviation market.

The Market Report combines two essential elements. One is quantitative: the sales and transaction data provided by Aircraft Exchange. This data comes exclusively from IADA Accredited Dealers and Certified Brokers. More importantly, IADA Accredited Dealers buy and sell more aircraft by dollar volume than the rest of the world’s dealers combined. This means that the IADA Market Report is based on real sales data submitted by our global powerhouse collective of dealers and brokers.

The second is qualitative: the opinions of IADA’s global membership. Together, they provide a unique temperature gauge measuring where our business stands now and, importantly, where our members believe the market is headed as we enter the fourth Quarter.

The great news is that our business is thriving, in spite of the stressors affecting the global economy. The turbulence that we faced in 2020 and 2021 has calmed down, bringing the market back to a more normalized pattern of transactions.

In addition to the hard work and professionalism of our Accredited Dealers, we believe the strength and resilience of our industry has a number of factors:

• There are new entrants in the market; we have an unprecedented number of first-time buyers.
• Commercial airlines have cut back their services, especially in smaller cities. This has increased the need for private aircraft for individuals and businesses in those venues.
• Our buyers and sellers are somewhat immune to current increases in interest rates. Over 60% of our transactions are paid in cash.

We are proud of our contribution to understanding the business aviation marketplace. I’m proud to present this Market Report to you. I trust you’ll find it as insightful as I do.

GENERAL MARKET CONDITIONS

The following data is derived from questions that measure members’ overall perspectives on the future of the used aircraft sales market over the next six months, including finance, leasing and commissions. Responses are reported on a 1-5 scale, with 1 meaning “worst ever” and 5 meaning “best ever.”

Respondents report that current market conditions are “normal” for Q3. Current market conditions are driven by a near-total lack of inventory and high demand.

6-MONTH MARKET SECTOR OUTLOOK

The Q3 responses show a slight increase in demand as well as supply in the turboprop market for the next six months with the light jet, mid-size jet, and ultra-long-range jet markets stabilizing in both supply and demand. Pricing across all aircraft categories is projected to stabilize.

MONTHLY ACTIVITY REPORTS

The perspectives and projections from IADA Members for the IADA Market Report are supported by the monthly transaction/activity reports submitted by IADA Accredited Dealers through AircraftExchange.

Please note that, in addition to sales data from AircraftExchange listings, the IADA Market Report includes data from all IADA Accredited Dealer activities and transactions, reported in total. Herein is a summary of those reports.