Following two years of very strong growth, the business jet market is now in a period of stability, according to Global Jet Capital’s (GJC) newly released market brief.
In the second quarter, OEM backlogs rose by 8.6 percent year-over-year, to $50.8 billion. Though the pace of orders has slowed from the heights seen last year, they still remain in line with historic levels and deliveries. The financier noted that the tempo of transactions decreased in the first half of 2023, a condition it attributed to slower-than-expected deliveries of new aircraft resulting from supply-chain bottlenecks and a decline in the preowned segment as the market adjusts following a superheated 2021 and 2022.
Available aircraft listings rose through the first half, continuing a trend that started in mid-2022. GJC explained that in the post-Covid environment, many aircraft have been sold before they were ever listed, and now owners are once again listing their available airplanes publicly.
As the market continues to stabilize, GJC expects preowned business jet inventory to rise, with available younger jets now standing at 4.4 percent of the fleet, up from 3.6 percent at the end of the first quarter. For those jets 13 years old or older, the inventory is now 7 percent, as many of those older aircraft purchased over the past two years are now being placed back on the market.