Strongest private jet sales ever reported by IADA members

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by CJI Expert
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Last year was the strongest year for private jet sales in the history of the International Aircraft Dealers Association (IADA), according to its Fourth Quarter (Q4) Market Report.

In 2022, 1,399 deals were closed, up 2% from 2021 when 1,370 deals were recorded. Resale volume represented $9.3bn in sales for the year just ended, averaging about $8m per transaction.

Despite the record year, aircraft dealers say market conditions are cooling. Year-on-year (YoY) sentiment about the market and projection for the next six months were both down in Q4 2022 compared with Q4 2021.

Similarly, more deals fell through in Q4 of 2022 than any other quarter in the year. A total of 48 deals fell through in the final quarter, compared with just 39 in Q4 2021.

Zipporah Marmor, chair, IADA told Corporate Jet Investor more deals fell through because buyers are being more cautious. “Everybody is watching the news and starting to think about the big r word [recession] and is it coming and how fast and how hard,” she said. “I think those who didn’t have the real urgency to acquire were finding reasons perhaps to postpone a little bit.”

Wayne Starling, executive director, IADA said members have “slightly more modest expectations” for the resale market over the next six months compared with a year ago. He added that more moderate projections also applied for the aircraft finance and leasing market.

Austin Bass, market research manager, Ogarajets said: “Over the next six months, I believe we will continue to see market normalisation. I anticipate a more balanced market, with the majority of aircraft beginning to depreciate at slightly higher than pre-pandemic levels.” Bass added that pricing for high-time and legacy aircraft will likely fall the most, while pricing for newly-delivered aircraft will likely benefit from OEM backlogs.

IADA Fourth Quarter Report – at a glance

  • Business jet sales market down YoY – Confidence fell from 4.1 out of 5 in 2021 to 3.6 in 2022
  • Projection for business jet sales six months from now fell YoY – Sentiment in 2021 was 3.8, dropped to 3 in 2022
  • Closed deals in Q4 went down YoY – 470 closed in Q4 2022, 501 closed in Q4 2021
  • New acquisition agreements down YoY – 169 in Q4 2022, 210 in Q4 2021
  • Aircraft retained to sell exclusively up YoY – 212 in Q4 2022, 134 in Q4 2021
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