Large and Medium Jet Markets Show Signs of Stabilizing
October 14, 2019 – According to Asset Insight’s Q3 2019 Market Report (AI2 Market Report), demand surged over 24% entering the fourth quarter, as prices continued to fall across all market segments, except Medium Jets, for which ask prices increased. Although still below the 12-month average, the quality of the for-sale fleet continued to improve, and the ETP Ratio (the marker indicating an aircraft’s marketability), improved in the third quarter.
The 3Q 2019 AI2 Market Report analyzes values for every production year of every modern make and model Business Class aircraft, while the Report’s maintenance analytics cover 96 fixed-wing models and 1,752 aircraft listed for sale.
Medium Jets stand out as only segment for which Ask Prices increased while the segment’s Maintenance Exposure (embedded/anticipated maintenance) worsened. At the same time, the Ask vs. Transaction Value differential/gap improved for the large and medium jets, indicating that buyer’s and seller’s expectations are coming together.
For all segments, all indicators point towards a continued decrease in prices through the fourth quarter. Prices are forecasted to decline faster than in previous quarters for all segments except the Small Jets, for whom the decline is expected to be minimal.
“We are expecting to see a strong year-end close for pre-owned business aircraft as demand continues to increase and prices are expected to decline” said Tony Kioussis, president of Asset Insight, LLC. “Buyers and sellers of Large and Medium Jets are even closer in their pricing expectations, and with very good aircraft quality, activity should be brisk.”
Note to editors, managers and owners: Please see the bottom right corner of each category page for a concise summary of the results and conditions in that specific market segment.
Exclusively available from Asset Insight, the AI2 Market Report includes eTrendTM, a 90-day forecast for aircraft value by make and model. This tool is especially helpful to sellers who are evaluating offers on their aircraft while concurrently considering if their prospects are likely to improve.
Statistically, Asset Insight’s eTrendTM forecasts are based on some of the most robust data analytics in the industry and have been thoroughly back-tested to confirm a significant degree of accuracy.
