The New Year began with strong demand for pre-owned aircraft, resulting in another decrease in available inventory, and an average Ask Price increase. Which models were affected the most? NAFA member, Tony Kioussis explores.
The 134-model fleet tracked by Asset Insight experienced the 19th consecutive monthly inventory decrease in January, this time dropping 16.1% (142 units), leaving only 742 units listed for sale. The latest decrease has led to a 55.8% inventory reduction since June 2020.
The listed fleet’s Quality Rating improved 0.6% in January to 5.177, following three consecutive 12-month low figures, keeping available assets within ‘Very Good’ territory. However, January’s Quality Rating equated to a 3.3% reduction Year-over-Year (YoY).
January’s Pre-Owned Aircraft Value Trends
Ask Prices for the listed fleet increased 5.8% in January, and yet the average is still down 12.3% YoY, which is not surprising if you keep in mind that availability currently consists of a heavily picked-over fleet.
For information, younger, lower-time aircraft (when they are actually listed for sale – many are selling without a formal listing) are recording high transaction values, thanks to numerous buyers competing for very limited availability.
By category, the Ask Price changes were as follows…
- Large Jets:After climbing 14.5% during Q4 2021, Ask Price climbed another 15% in January 2022 to a 12-month high that was also 30.9% higher, YoY.
- Mid-Size Jets:Following December 2021’s record-low Ask Price, the Mid-Size Jet category’s figure improved 17.8% in January. But that was still 16.5% lower YoY, and remained below the group’s 12-month average.
- Light Jets: Ask Prices rose a mere 0.3% after December’s 12-month low figure, leaving the average 22.2% lower, YoY.
- Turboprops:With higher quality assets leaving the inventory during January, the average Ask Price for the remaining listings decreased 8.6%, to a 12-month low equating to a 7.9% drop, YoY.
This report was originally published by AvBuyer on February 17, 2022.
