Business Aviation News

IADA Sees Thriving Third Quarter Market for Aircraft Sales

IADA Sees Thriving Third Quarter Market for Aircraft Sales

International Aircraft Dealers Association (IADA) released its 2022 third quarter market report at the 2022 NBAA Business Aviation Convention & Exhibition (NBAA-BACE) this week, noting that aircraft sales activity remains strong.

A total of 929 deals were closed by IADA dealers this year, with 331 sales transactions in the third quarter, fewer than the 340 reported during the same period in 2021.

The number was partially due to the cutting back of commercial airlines during COVID-19, and the impact of increasing interest rates is small as over 60% of the transactions were done by cash.

“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,” according to the report.

Some 40 percent of business aircraft transactions in 2021 involved customers new to the private aviation marketplace, according to IADA.

“The market has returned to a much more reasonable mood. Buyers in the market took a summer pause due to bad economic headlines and a small incremental increase in inventory across most all makes/models. That pause is over, as evidenced by brisk activity and offers across the spectrum of the market,” said Shawn Dinning, Accredited Dealer, IADA.

Many IADA members predict a strong last quarter for 2022 due to the impending end of 100% accelerated depreciation.