Tariffs making pricing, closing EU aircraft deals harder
More business jets are being used for charitable flights. (Photocredit: ACJ).
The import taxes being applied on planes and parts manufactured outside of US are making it harder to price and close aircraft deals involving European-built jets, said VREF Aircraft Value Reference & Appraisal Services in its Q1 2026 market update.
Tariffs have led to daily cost-of-carry variables in cross-border transactions, particularly in European-manufactured large-cabin segments, VREF said in its note.
VREF noted that interest rate normalisation has fundamentally altered acquisition modelling. Buyers are increasing cash participation, shortening amortisation structures and underwriting residual risk more conservatively. “Financing is no longer a secondary conversation,” said Jason Zilberbrand, ASA, President of VREF. “It directly defines effective entry basis and influences valuation strategy.”
In terms of market, VREF said that strength of late-model jets valuations. VREF defines late-model jets as aircraft delivered within the past seven years. It said that that it remains the most insulated segment of the global fleet.
OEM backlogs at Gulfstream, Bombardier, Dassault, and Embraer continue extending three to five years in several categories, sustaining demand for late-model preowned aircraft as immediate lift solutions.
“Supply discipline combined with capability acceleration is supporting late-model value resilience,” said Jason Zilberbrand, ASA, president of VREF. Zilberbrand added that buyers continued to have high expectations around avionics integration, connectivity, automation, and lifecycle transparency in the pre-owned inventory.
For the mid-life aircraft, Zilberbrand says that the valuation for the segment “no longer age dependent. It is maintenance dependent.” VREF noted the transitional plateau in values for the 8-15 year segment with variation driven by maintenance exposure and modernization status.
Aircraft exposed to capital intensive investments such as including engine overhauls, landing gear inspections, and avionics upgrade are experiencing selective pricing pressure. On the flipside, aircraft that have recently cleared major inspections or undergone modernisation are transacting with relative stability.
However, VREF noticed biggest change in the 20+ year aircraft segment where it highlighted the re-acceleration in depreciation. Aircraft exceeding the 20-year threshold are depreciating beyond historical curve assumptions as buyers more aggressively price avionics modernisation exposure, engine overhaul timing, cabin refurbishment requirements and OEM parts and long-term supportability risk.
Sharing statistics, VREF said that aircraft brought to market and aircraft sold in the 20+ year segment declined by 14.8% and 43.2% respectively. “Deals are still closing,” said Zilberbrand. “But diligence timelines are extending, financing structures are tightening, and lifecycle modeling is embedded directly into acquisition strategy.”
Fleet availability in the late models particularly among the post-2016 large-cabin aircraft remains below 3% in several models, reflecting structural scarcity and ownership retention.
VREF said the “market is transitioning from enthusiasm to discipline rather than entering a downturn.”
