Ask Prices Continue to Fall Entering Third Quarter
July 29, 2019 – According to Asset Insight’s Q2 2019 Market Report (AI2 Market Report), demand fell through the second quarter, posting a two-year low due to aging inventory, and prices continued their downward trajectory. However, the ETP ratio improved as did the average number of days on the market for the for-sale fleet, appearing to signal improved fleet marketability.
The 2Q 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 1,680 aircraft listed for sale.
Other trends detailed in the 2Q 2019 Market Report include:
- Ask Prices decreased for all categories of aircraft except Medium Jets through the first half of 2019,
- Buyer’s and Seller’s expectations came closer together for three of the four tracked groups,
- Even though the average age of the for-sale fleet continued to climb, the fleet’s Quality Rating remained in the “very good” range,
- Maintenance Exposure (an aircraft’s accumulated/embedded maintenance expense) for the inventory fleet improved on average.
“The quarter over quarter 90-day value eTrendTM forecasts average prices will continue to decrease, albeit more slowly than recent periods, for all categories of aircraft, except for Medium Jets, which our forecasts indicate will see more rapidly decreasing prices in the next 90-days” said Tony Kioussis, president of Asset Insight, LLC. “Aircraft on the market continue to be of Very Good quality, and with prices continuing to decrease, buyers could have some excellent opportunities for optimum deals.”
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.
