IADA reports rise in transactions but remains cautiously optimistic

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Aviation International News | Aviation International News

By Sky Industry News

Jul 29, 2024

The preowned business aircraft market is maintaining a steady pace, with transactions up 20% year over year (YOY) in the second quarter and sales of late-market aircraft remaining strong, according to the International Aircraft Dealers Association (IADA). The quarterly performance, IADA added, spurs “guarded” optimism for the rest of the year.

During the second quarter, 366 deals closed, marking the highest number since IADA launched its survey in 2020. Through the first six months of this year, 620 sales were completed, reflecting a 14% YOY increase. IADA described this gain as an indicator of “healthy level activity in a rebalancing marketplace.”

However, IADA also pointed to macroeconomic factors fueling ongoing uncertainty, including geopolitical tensions, global elections, and persistent concerns surrounding inflation and interest rates. “Most IADA members have been impacted by these headwinds and still view the global preowned business jet market with guarded optimism,” the association stated.

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Regarding rebalancing, transaction times are taking longer as buyers and sellers are returning to negotiation pre-purchase inspection findings—a step often skipped amid the overheated market during the pandemic. New acquisition agreements fell slightly in the second quarter from 294 in 2023 to 289 this year. However, 570 aircraft were under contract in the most recently ended quarter compared with 442 last year. The number of deals involving a price drop increased significantly from 125 in the second quarter of 2023 to 211 this year. The association said that its market report is based on both quantitative sales data and exclusive on-the-ground perspectives from IADA members.

“For the next six months, two-thirds of members surveyed predict that pricing and demand for large and ultra-long-range bizjets will decline while supply will increase, continuing a trend noted in our last quarterly report,” said IADA executive director Wayne Starling. “Most IADA survey respondents anticipate stable demand in the turboprop and light jet segments for the next six months; though opinions vary more for midsize and larger jets,” he added.