July 13, 2022 – Prices and demand remain strong across the pre-owned business aircraft marketplace, setting a 12-month value peak in 2Q 2022. Recent model, low-time inventory is still scarce and selling very quickly, but the incidences of sales without listings appear to be decreasing. For each month of 2Q, the number of aircraft listed for sale increased after the precipitous inventory decline began in June 2020. The 2Q 2022 AI2 Market Report covers 134 fixed-wing models and 791 aircraft listed for sale.
The second quarter of 2022 saw a new all-time high differential in the length of time aircraft with a high ETP Ratio (40% or more) took to sell, versus those with a low ETP Ratio (below 40%). Aircraft whose ETP Ratio is 40% or greater are burdened with excessive Maintenance Exposure and are averaging 469 days to sell, compared to aircraft whose ETP Ratio is below 40% are averaging 183 Days on Market – a differential of 156%.
“Overall, and by specific aircraft category, demand for pre-owned business aircraft continues to be very strong. However, indicators show that the recent buying frenzy may be calming,” said Tony Kioussis, president of Asset Insight, LLC. “The question on the minds of everyone in the market is how long will Ask Prices continue to climb as inventory of available aircraft also increases.”
On average across the for-sale fleet, the Quality Rating remained unchanged following the 12-month best rating in April. Some aircraft classes, however, fluctuated more than others. Specifically, Large Jets saw a 5% Quality Rating decrease during 2Q as buyers opted for aircraft featuring a higher maintenance status, while Turboprops saw a 3.3% increase in Quality Rating due to recent listings of higher Quality assets.
Well into Season 3, Asset Insight’s Podcasts offer something for all business aviation segments. With over 55 episodes, there are topics that will interest aircraft buyers, sellers, owners, operators, experienced industry professionals, and those new to the industry. Asset Insight Podcasts are available on Apple Podcasts, Spotify, Stitcher, Google Podcasts, www.assetinsight.com, www.assetinsightpodcast.com, and wherever you get your podcasts.