According to the Sandhills Global Equipment Value Index, the preowned turbine business aircraft market is experiencing slower price increases and rising inventories year-over-year. Despite this slowdown, values remain elevated in recent months, with used jet and turboprop inventories exceeding the previous year's figures. Sandhills Global is responsible for publishing the Controller used aircraft market listings.
Brant Washburn, Controller department manager, noted that "jet and turboprop markets are seeing asking values plateau." Sandhills' data reveals that worldwide used jet inventory numbers increased by 5.75 percent month-over-month in March and are currently on an upward trend. The levels of used inventory have seen a dramatic rebound over the past year, with a 109.61 percent increase year-over-year. However, the pace of asking value increases has cooled off recently, with a modest growth of 0.42 percent month-over-month. Despite this, the jet market's asking values remain up, showing an 11.02 percent year-over-year increase.
In the used turboprop market, inventory levels have grown 12.44 percent year-over-year, following an 8.12 percent month-over-month gain. Asking values for these aircraft increased by 2.66 percent month-over-month in March but still experienced a significant 14.29 percent year-over-year increase, according to Sandhills.
The preowned business aircraft market's slowdown may be attributed to various factors, such as global economic trends, travel restrictions, and changes in the overall aviation industry. Nonetheless, the market remains robust, with demand for used aircraft remaining high due to their lower acquisition costs and shorter lead times compared to new aircraft purchases. Additionally, the rising interest in private aviation, particularly during the pandemic, has contributed to the continued strength of the preowned aircraft market.
As the aviation industry adapts to changing market conditions and shifting demand, the preowned business aircraft market is likely to evolve further. It will be essential for manufacturers, brokers, and buyers to closely monitor these trends to make informed decisions in this dynamic environment.