Used "heavy" business jet sales flourished in the first quarter, with increased transactions and shrinking inventories, according to business aviation data analyst Amstat. In its newly released first-quarter Business Jet and Turboprop Resale Market Update, Amstat details smaller available inventories across the preowned business aviation market, but also with slower sales and dampened prices in the lighter segments.
The first quarter brought increases in sales for older heavy jets—those that weigh at least 40,000 pounds and are more than 20 years old—with 2.7 percent of the active fleet turning over. This compares with 1.6 percent in the same period a year ago. Likewise, 2.4 percent of active mid-age heavy jets—those between 11 and 20 years—turned over in the first quarter of this year, compared with 2 percent in Q1 2017. This trend continued with newer heavy jets as 1.9 percent exchanged hands in the first quarter, compared with 1.1 percent a year ago.
Sales of newer medium jets—those between 20,000 pounds and 40,000 pounds—were slower in the first quarter. According to Amstat, 2.2 percent of the active fleet turned over in first-quarter 2017, while only 1.5 percent did so this year. Newer light jets also slowed slightly, with 2 percent turning over in this year's first quarter, compared with 2.1 percent a year earlier.
Turboprop sales were stable, averaging between 1.7 percent and 1.8 percent in each of the last two first quarters for all age segments.
Fewer active aircraft are available for sale in all market and age segments, Amstat reported. Only 4.9 percent of the newer heavy jet segment is for sale, compared with 8 percent a year ago. And inventory of mid-age heavy jets fell over the past year from 10.2 percent to 7.3 percent, the lowest levels since 2008.
Inventory of newer preowned midsize jets shrunk from 6.9 percent a year ago to 5.6 percent. Additionally, the number of newer light jets available for sale contracted from 8.6 percent a year ago to 5.8 percent this year. “This is the lowest percentage in this particular market segment since Amstat has been keeping record,” the analyst said.
Percentages also have come down for older jets, as well as for turboprops, Amstat further reported.
Pricing has strengthened for heavy jets, up by 9.1 percent for the newer models, but are still sliding in many midsize and light jet models.