Bonus depreciation boosts sentiment – IADA

Bonus depreciation is contributing to a significant upswing in market sentiment and confidence, according to the third-quarter report from the International Aircraft Dealers Association (IADA).

The body said optimism among members for aircraft sales, financing and leasing rose “markedly” because of the tax break, reintroduced by President Trump.

It also reported that inventory of preowned stock “tightened” in the third quarter with a scarcity of younger, high-demand aircraft. Older aircraft facing maintenance remained on the market for longer and experienced continued “pricing pressure”, it said.

“The re-implementation of bonus depreciation in the US has generated significantly positive effects on business perceptions and operational planning. This favourable policy environment has contributed meaningfully to the quarter’s strong performance,” said Lou Seno, executive director, IADA.

“Looking forward, IADA members project a strong market performance for the fourth quarter of 2025 and over the next six months.” 

IADA said there was a notable shift toward a more “seller-driven” market as inventories narrow.

Dealers linked to IADA closed 357 deals in the third quarter of 2025, compared with 377 deals in the same quarter of 2024. There were also 171 new acquisition agreements in the third quarter of 2025, up over the third quarter of 2024, it said.

The next six months could see “stable” or “slightly higher” pricing, according to 70%–80% of respondents in IADA’s quarterly member survey.

This represents a sharp rise from the second quarter, with strength most evident in the midsize and large jet segments.

About 75% of respondents foresee “stable” to “slightly lower” supply in the next six months, representing a downward trend from the previous quarter.

In terms of demand, more than 90% forecast “stable” or “increased demand”, up from about 80% in the second quarter, with strong sentiment for midsize jets.