JETNET releases May 2012 and five months 2012 numbers

JETNET has released May 2012 and YTD 2012 results for the pre-owned business jet, business turboprop and helicopter markets.

JETNET Highlights in Table A the key worldwide trends across all aircraft market segments comparing May 2012 to May 2011. The fleet for sale percentages for all market sectors were down in the May comparisons. Business jet sale transactions was the only market segment to show an increase (5.0%) YTD in May 2012 compared to 2011, and business jets are selling in less time (45 fewer days) on the market. However, business turboprop, turbine and piston helicopters saw declines in sale transactions YTD at 2.4%, 14.6% and 13.8%, respectively.

The turbine helicopter market was the only segment to show an increase (9.7%) in average asking price in the YTD results, while the percentage change in sale transactions declined by 14.6%. Table B shows the year-to-year percentage
change in averaging asking price compared to sale transactions, measuring YTD by month from January to present. Sale transactions have declined at an average of 15% since January 2012. However, the average asking price reduction has not deterred this decline in pre-owned sale transactions.

JETNET says that the real gross domestic product (GDP), the third estimate of the 1^st quarter 2012-the output of goods and services produced by labour and property located in the United States-increased at an annual rate of 1.9% in the first quarter of 2012 (that is, from the fourth quarter of 2011 to the first quarter of 2012), according to the “third” estimate released by the Bureau of Economic Analysis (BEA).

In the fourth quarter, real GDP increased 3.0%. This is the same trend as was witnessed in the first quarter of 2011 compared to the fourth quarter of 2010. Next month BEA will provide the first estimate of the second quarter 2012, and hopefully the report will show improvement over the first quarter 2012 results. As reported in previous analyses, whenever U.S. GDP growth is 3.0% or greater, business aviation does well.

The expectations for the remainder of 2012. 2011 ends over three years since the economic downturn in late 2008. Expectations at the beginning of the year were cautiously positive for 2012 but with a warning label to “Open with Care” as
there is still a strong need for both business and consumer confidence to improve. There is a slight upward trend in the business jet market as a strong month of June and 2nd quarter ending results are anticipated. This optimism may
be the result of lower fuel pricing, as it was inching up to another record fuel price level before turning downward.