The International Aircraft Dealers Association (IADA) has issued its Third Quarter 2024 Pre-owned Aircraft Market Report, highlighting a rise in optimism among members as the quarter concludes.

IADA-Accredited Dealers reported that they closed 373 business aircraft deals in the third quarter of 2024, compared to 324 in the same period in 2023 and 331 in the third quarter of 2022. Year-to-date (YTD) closings at the end of the third quarter were 993 in 2024, 868 in 2023 and 929 in 2022. The complete report can be downloaded at IADA’s AircraftExchange.com website.

The third quarter of 2024 ended with 874 YTD business aircraft transactions under contract, up 24 per cent from 704 YTD at the end of third quarter in 2023. At the same time there were 965 aircraft retained to sell exclusively YTD with IADA dealers, compared to 642 at the end of the third quarter in 2023 YTD, up 50 per cent.

The report reflects renewed confidence in the global pre-owned business aircraft market, driven by increased inventory listings, higher yet stabilising service costs and recognition of geopolitical uncertainties. Following a period of fluctuation, the global pre-owned business jet sector appears to be settling into a ‘back to work’ rhythm, with a marked rise in aircraft inventory listings.

“While the summer months may have been a bit light on sentiment toward business aircraft transactions, which is a seasonal norm, most of the dealers and brokers are reporting heightened activity over the past month,” says IADA chair Phil Winters, vice president of aircraft sales and charter management for Greenwich AeroGroup & Western Aircraft. “Although there are more sellers coming to market at a greater rate than buyers, the buyers are absorbing that inventory increase with slightly lower pricing than two years ago. At the end of the third quarter, we seem to be setting up for an active and healthy fourth quarter of this year.”

“We’ve observed an easing in the insurance marketplace and a shift towards a buyer-driven market, contrasting with earlier trends in 2024,” notes IADA executive director Wayne Starling. “This may signal a new phase in the current market cycle.”

The time an aircraft remains on the market has also been a point of focus for the industry. According to AMSTAT data cited in the report, the ‘days on market’ (DOM) rate increased by 55 per cent over the past 18 months. However, this trend has stabilised in the third quarter, with the DOM rate experiencing only an eight per cent increase, staying below the 10-year average.

IADA members also noted that the anticipated slowdown due to geopolitical tensions and the ongoing election cycle had less impact than expected. Combined with a recent drop in interest rates, the market is now showing promising signs of renewed activity. Hesitation among buyers due to market uncertainty appears to be diminishing, with IADA members encouraging clients to act swiftly as the fourth quarter market is expected to accelerate.

The Perspective Survey that informs the Market Report is sent out to over 1,000 IADA members, some of whom are involved in both new and pre-owned aircraft sales.

IADA Products and Services Members are part of a collective network of aviation professionals and represent a breadth of members that provide comprehensive services, including transactions, operation, maintenance, insurance, and financing and leasing. Together, they offer a clear perspective on the current state of the industry as well as an informed point of view on projections for the next six months

The IADA Market Report is based on both quantitative sales data and the exclusive, on the ground perspective of IADA members, who buy and sell more pre-owned business aircraft by dollar volume than the rest of the world’s dealers combined. The organisation’s membership and survey participants include IADA-Accredited Dealers, Certified Brokers and IADA-Verified Products and Services members; their insights follow:

“We believe activity will continue to increase as most aircraft owners are wanting to upgrade and the OEMs are still backlogged,” says Cameron Jones, Jones Aviation Group, IADA-Accredited Dealer.

“The insurance market has softened with additional capacity coming into the market and underwriters expanding their risk appetite in order to achieve their top line goals. While not all segments of aviation are seeing the same level of premium relief, we do expect the downward trend to continue into the first quarter of 2025,” comments Jay Scarbo, AssuredPartners Aerospace, IADA-Verified Products and Services Member.

“The US presidential election will dissolve despondency,” states Nicolas von Mende, Atlas Air Service, IADA-Accredited Dealer.

“Post-election, we anticipate a surge in market activity, buoyed by projected interest rate drops in September that could stimulate transactions and create favourable conditions for both buyers and sellers,” says Emily Deaton, JetAviva, IADA-Accredited Dealer.

“There is certainly more inventory available now than there was 12 months ago, but current-generation pre-owned aircraft remain in demand. Buyers have more negotiating power when considering older aircraft,” comments Jonathan Lones, Flightline Group, IADA-Accredited Dealer.

“Given our extremely active third quarter, I expect a significant surge fourth quarter and intensification post-election. Those that wait for ballots to be counted will likely deal with limited inspection locations, watered down pre-buys and/or post-closing conditions in order to transact in 2024,” states David Monacell, CFS Jets, IADA-Accredited Dealer.

“After five years of ‘hard market’, the aviation insurance market has shown consistent signs of softening since January ’24. It remains to be seen if this will result in rate reductions or just a stabilising of the higher rates we’ve seen over the last few years,” says Steve Johns, LLJohns Aviation Insurance, IADA-Verified Products and Services Member.

“With the G700 and 6X both entering the market, starting to see some good aircraft on the aftermarket. Insurance rates were reduced this year for our fleet. Charter market is down, fractional fleets have captured the substantial charter market share that we saw in 2022/2023,” comments David Lamb, Clay Lacy Aviation, IADA-Verified Products and Services Member.

“Finally operating in the ‘normal’ category. Natural depreciation is expected and more supply is welcome change for the buyers who still seem to exist and are entering the market,” states Chad Anderson, Jetcraft Global, IADA-Accredited Dealer.

“Even though new aircraft are sold out through 2025 and into 2026, the used market is showing signs of weakness and, at least in the short term, a down cycle for most models,” says Cary Friedman, Eagle Aviation, IADA-Accredited Dealer.

“Second and third quarter market conditions and transaction volume have exceeded expectations within the midsize jets, light jets and turboprop segments. Specific to midsize business jets, light business jets and turboprops, inventory is steadily increasing but demand and absorption are equalising the increase in inventory,” comments Scott Oshman, Oshman Aviation, IADA-Accredited Dealer.

“I continue to be encouraged by the increase in aircraft demand outside of the US, despite the consistent increase in supply within the US market. It will be interesting to see where worldwide inventory levels stabilise in terms of percentage of fleet for sale,” states Shawn Dinning, Dallas Jet International, IADA-Accredited Dealer.

“We have seen an overall uptick in inquiries and deep conversations with buyers while the closing of deals has seen a slowdown and simultaneously a lowering of prices as a reflection of increased inventory,” says Michael Barber, Leviate Air Group, IADA-Accredited Dealer.

“Demand for 0 to 10 year old pre-owned airplanes remains healthy, as evidenced by transaction rates over the quarter absorbing the supply though at slightly lower prices than the peak in 2022. OEM backlogs out 12-24 months continue to drive the healthy transactions of later model airplanes,” comments Phil Winters, Western Aircraft, IADA-Accredited Dealer.

“Solid buyers’ market for mid to old makes/models and slight sellers’ market for near-new to new makes/models. Supply stable to trending up ever so slightly as pricing trends down ever so slightly,” comments Frank Janik, Leading Edge Aviation Solutions, IADA-Accredited Dealer.

“Election year puts many buyers on the fence, or in a wait and see mode. Finance rate drop uncertainly does the same thing. If the Fed lowers the interest rate that should spark some yearend activity,” says Scott Kraemer, Holstein Aviation, IADA-Accredited Dealer.