Jefferies: Preowned Bizjet Inventory Dips, Prices Rise

Inventory of for-sale preowned business jets dipped by 12% year over year (YOY) to 1,018 aircraft this month and is down by 14% over the last six months, according to a new report from Jefferies.

Large-cabin jets are a driver of this decrease, Jefferies maintained, down 18%, followed by light jets (-11%) and midsize jets (-9%), citing its own and Amstat data. As a result, pricing has ticked up by 4% YOY. Available inventory of the business jets that Jefferies tracks stood at 4% of the in-service fleet.

Jefferies added that for younger aircraft—those less than seven years out of production—available inventories have plummeted by 32% YOY and represent 2.2% of the overall fleet. Compared with December, the Gulfstream younger inventory in January dropped by 40%, Dassault by 27%, and Textron Aviation’s Cessna jets by 17%.

Preowned Gulfstream availability shrunk even further from a year ago by 51%, to 31 units. The G650 segment alone represented an 18-aircraft dip, while the number of in-service G700s has grown to 81, according to Amstat data.

Availability of preowned Bombardier business jets has been curbed by 38%, to 42 units, with 39% fewer Globals and 43% fewer Learjets on the market. Embraer jet availability slid by 34%, to 23 units, primarily from a seven-unit drop in Legacy 600/650s. The number of Cessna Citations available dropped by 17% YOY, to 50. But Dassault inventory levels climbed by 10%, to 22, with 4.1% of the active fleet available.

Citation average list prices soared by 32% YOY, with a 225% increase in X+ models. Gulfstream prices edged up 0.5%, averaging $27.6 million. But Embraer prices dipped by 2% YOY, to $12.4 million, while Bombardier rose 2% to $21.4 million, and Dassault by 8%.