Q2 Market Report

What a time it is to be in the private/corporate aviation industry. For a litany of reasons, the pandemic has pushed aircraft sales into the stratosphere. Inventories are at an all-time low and prices continue to rise. A better time to sell an aircraft hasn’t existed in decades, if ever. At the same time, prices continue to rise and for would-be buyers, the likelihood of asset value appreciation has never been higher. We’re seeing 30%-40% increase in sales price year over year on high-demand airframes. We understand that airplanes aren’t stock, and holding costs are high, but don’t let the market pass you buy if you’ve been kicking tires.

According to CNBC, bizjet takeoffs and landings were up 40% from 2020-2021. While much of uptick can be laid at the feet of the pandemic driving new customers to private aviation as a means to avoid exposure, long lines, and mask mandates. In all actuality, most industry analysts attribute the trend to a wealth boom in the last year and a half, as more companies go public, the stock market hits record highs, and an this extended period of low interest rates[1]. While rates are on the rise, we’re not seeing that reflected in the current market activity.

Here are a few popular aircraft market stats:

• Dassault Falcon 900EX - 3 currently available, average acquisition price: $10,495,000

• Cessna Citation Encore - 1 on-market at $3,450,000

• Gulfstream G-IV - 3 currently available, average acquisition price: $4,950,000

We’re certain the market will flatten, and we’ll see more inventory come online in the short to mid-term, but Q1 has shown more tenacity than most industry experts predicted.

If you’d like us to research any models for you, please reach out to Clayton Corn at clayton@apexflightsolutions.com.