Jetcraft preowned business jet
There were 288 preowned business aircraft transactions in the first quarter—a 35 percent year-over-year rise, according to the International Aircraft Dealers Association's first-quarter market report. (Photo: Chad Trautvetter/AIN)

Preowned Business Jet Market Continues Feverish Pace

An industry association reports a big jump in the number of transactions.

The preowned business aircraft market remains hot, with 288 transactions completed in the first quarter of 2022, according to a report from the International Aircraft Dealers Association (IADA). That's a 35 percent increase from the first quarter of last year when 213 transactions were completed, the association said.

“We live in tumultuous times," said IADA executive director Wayne Starling. "Despite that, the aviation field continues to show extraordinary strength. Global demand is very high.”

IADA members reported that acquisition agreements nearly doubled to 223 in the first quarter, up from 121 a year earlier. Prices dropped in only six cases, compared with 27 a year earlier. IADA reported that 45 deals fell apart in the quarter. Although that number was up from 41 in the first quarter of 2021, it was against the backdrop of an increase in the number of agreements.

The association’s members were retained exclusively to sell 155 aircraft in the quarter, down slightly from 157 a year earlier.

Eyeing the volatility of the market as a result of the pandemic, IADA began monthly tracking of preowned business aircraft sales of its members in April 2020. It compiles that data in its market report.

A member survey revealed that current market sentiment was 20 percent more positive in the first quarter of 2022 than it was a year earlier, but the six-month outlook is less certain. “While it is a great market for sellers, it is a very challenging market for buyers, to the point of significant buyer frustration and in some cases desperation," said Shawn Dinning of Dallas Jet International. "This is the main Achilles' heel of the current market.” 

Cody Vanderslice of Textron Aviation agreed that demand remains strong but added, “It does seem the speed at which we get a listing under [letter of intent] is decreasing. It also seems there are more off-market aircraft being communicated. This indicates we may be seeing the first signs of the market softening a touch.” The next month may provide more insight on that, Vanderslice said.