Sales up but inventory and asking prices down, says report

Growth in the number of transactions has been balanced against a contraction in inventory and average asking prices during the first half of the year, according to new figures.

Market research company AMSTAT Inc has released its latest Business Aircraft Resale Market Update report, which shows that, while the number of retail transactions is up on 2016, inventory levels are at their lowest for nine years and average asking prices continue to fall.

“There have been further encouraging signs coming from the business aircraft resale market,” says AMSTAT. Overall business jet retail transactions were up 8.4% during the first half of 2017, on the same period of 2016, with sales of medium jets up 16.7%, sales of heavy jets up 3.8%, and sales of light jets up 4.4%.

The number of turbine helicopters that were resold increased by 6.5%, and transactions within the single engine market rose by 9.9%.

But there were also market segments that did not perform as well. The number of transactions involving turboprop aircraft fell 0.5% during the first half of 2017, compared to 2016 levels, and the multi-engine helicopter sector saw a 1.5% decline.

And inventories are at, or close to, their lowest levels since 2008 for business jets (10.7% of active aircraft), heavy jets (9.3%), medium jets (10.6%), and single engine turbine helicopters (5.6%). The turboprop inventory is at 8.3%, which is lower than last year and the sector’s lowest since the start of 2015.

The percentage of light jets for sale is 11.7%, says AMSTAT, which is up from 11.5% a year ago. The multi engine helicopter inventory has remained largely unchanged year-on-year.

But despite more transactions and smaller inventories, the average asking prices in most market segments continue to fall. All segments saw year-on-year declines – the average asking prices for heavy jets are down 5.5% on the first half of 2016, medium jets are down 7.6%, light jets are down 5.1%, turboprops are down 2.5%, and multi and single engine helicopters are down 0.6%.

You can read the full report here.