JP Morgan says the number and prices of younger business jets is falling

In its monthly business jet report for December 2013, JP Morgan says that although the number of younger aircraft for sale is falling, prices are also falling.

JP Morgan says this has happened since the summer. On average, used aircraft prices fell 0.9 per cent in November. The bank says that the number of aircraft under five years old for sale fell 0.3 per cent to 6 per cent. It has fallen 1.7 per cent since the summer.

“We still see stabilizing and then improving used prices as a precondition for a genuine pickup in new jet demand. Nonetheless, the optimistic interpretation of these recent trends, and one that we are inclined to favor, is that there is finally a market clearing bottom in pricing taking place,” said JP Morgan in its report.

JP Morgan, which uses JETNET data, said that the total used business jet inventory reached 10.3 per cent of the fleet. Medium jets drove the decline, with six of seven models falling.