Young Pre-owned Business Jet Inventory Stable, Says UBS

Pre-owned business jet inventory inched down by 0.1 points last month to 11 percent, below the historical average of 13 percent, according to the latest data from UBS Global Research. At 2,326, the number of pre-owned business jets available for sale at the end of last month was roughly unchanged from a year ago, however, UBS said.

Slightly less than half of this inventory are jets 15 years old or younger, with the bulk of these—511—in the “young” category, meaning six to 10 years old. Inventory levels of very young business jets, those five years old or less, increased slightly, to 7 percent of the installed base, while the young inventory decreased by a sliver, to 10 percent of the installed base. Both of these younger aircraft categories “look to have stabilized after recent increases, although six to 10-year-old inventories remain near all-time highs on absolute basis,” said UBS aerospace analysts David Strauss and Darryl Genovesi. Pricing in both of these categories fell 1 percent last month.

Inventory levels of young pre-owned midsize jets have steadily increased and are now at 12 percent of the installed base, while young used light jets increased 2 points, to 10 percent, from a year ago. But inventory of young pre-owned large-cabin business jets now sits at 10 percent of the installed base, down from 13 percent last year.

According to UBS, Gulfstream G650/650ER inventory has stabilized at 7 percent of the installed based, with 14 currently available for sale—down from a peak of 18. Pre-owned G650/650ER pricing was roughly unchanged last month, but is 20 percent lower from peak and now below new G650 pricing.