Despite a 37 percent year-over-year uptick in preowned helicopter sales and a smaller 8 percent rise in units sold in the first quarter, the market is expected to swing lower from the “double whammy” effects of the Covid-19 pandemic and sliding oil prices, according to rotorcraft broker Aero Asset’s Preowned Helicopter Market Trends report.
Meanwhile, the supply of preowned helicopters increased 4 percent, to $909 million on 240 units, in the quarter. The industry absorption rate for the period was stable at 21 months, but deals in the pipeline fell 30 percent, to 18 units, the report noted.
“Aero Asset will closely monitor the second quarter and beyond for any signs of a recovery, as we are already seeing the immediate effects of the global Covid-19 pandemic and the double whammy of a worldwide crash in oil prices,” said Aero Asset sales director Emmanuel Dupuy. “Beyond the human scope of the pandemic, both events are wreaking havoc on economies around the world.”
Helicopter light twins saw an increase in supply with flat sales in the quarter, while the supply of medium twins was flat, with sales up by a third. The supply of heavy twins declined by 30 percent in the quarter, while sales doubled during the period, according to the report.