Seller’s market settles in as prices increase and buyers and sellers expectations for price come together


Asset Insight

January 22, 2019 – According to Asset Insight’s Year End 2018 Market Report (AI2 Market Report), demand for late model turboprops and large jets continued to increase in the fourth quarter of 2018 and helped drive a continued seller’s market with higher average selling prices. Excellent quality “for sale” aircraft are expected to drive prices up further in Q1 2019 as buyers’ and sellers’ expectations continue to converge on selling price.

The 4Q 2018 AI2 Market Report analyzes values for every production year of every modern make and model Business Class aircraft, while the Report’s maintenance analytics cover 94 fixed-wing models and 1,591 aircraft listed for sale.

Other trends detailed in the 4Q 2018 Market Report include:

  • Ask Prices increased for all groups during Q4;
  • Inventory aircraft with higher Maintenance Exposure relative to Ask Price, spent 57% longer on the market than comparable aircraft;
  • Tracked fleet’s Quality Rating remained within the “Excellent” range and saw improvement in Q4 2018, over previous 12-month best ratings;
  • Excellent Asset Quality improves Maintenance Exposure for most groups, except for Large Jets as the unsold inventory’s accrued/embedded scheduled maintenance increased (worsened).

“Q4 continued the trend with sales of high-quality, recent models driving average selling prices higher” said Tony Kioussis, president of Asset Insight, LLC. “The seller’s market continued through the end of 2018, and we are forecasting increased prices well into 2019. However, buyers should continue to research the cost for pending maintenance events.”