Aircraft market ‘more balanced’, says IADA
Business aviation is in a healthy place, says IADA.
The pre-owned market for business jets is “healthier” and less frenetic than the post-Covid period, according to the latest report from the International Aircraft Dealers Association (IADA).
Its Current Market Forecast & Portrait publication suggests inventory levels are “normalised” and prices “rationalised” with demand being driven by corporate clients and ultra-high-net-worth individuals in North America, the Middle East and parts of Asia.
In terms of new aircraft, OEM’s are reporting “healthy backlogs” despite the “cadence of delivery” slowing because of recent supply chain and labour issues.
“The 2025 market is both disciplined and resilient,” said Lou Seno, executive director of IADA. “Buyers and sellers are operating in a more balanced environment, but timing, asset readiness and proactive planning remain decisive factors.
“IADA-accredited dealers can give stakeholders a more detailed and nuanced snapshot of the details needed to make well-informed buying and selling decisions across a complex global landscape.”
The report also suggests the recent US government decision to reintroduce 100% bonus depreciation is accelerating demand for both new and pre-owned aircraft. US-Europe trade deals preserving free flows for aircraft , engines and parts have also helped stabilise transatlantic markets.
Momentum in the large jet market is “firming”, the report says, while the super-mid and midsize jet market remains the “liquidity engine” with “normalised days on market” and a “gentle” trend towards softer pre-pandemic prices.
In the light jet and turboprop sector, the bid-ask spread for better quality assets has narrowed with more price sensitivity on older aircraft or those with issues such as upcoming hot section maintenance.
Financing is a “large and durable” share of the market and lease options are becoming more popular than 100% cash because of favourable interest rates and tax dynamics.
