NAFA member, Asset Insight, shares the latest Q1 Market Report.
April 22, 2021 – The pre-owned business aircraft market saw a 7% increase in sales volume in Q1 2021 over Q1 2020, while Ask Prices were down nearly 6%, reports the Asset Insight AI2 Market Report. Overall demand remained unchanged over Q4 2020, but increased nearly 44% compared to Q1 2020. The Q1 AI2 Market Report covers 134 fixed-wing models and 1,661 aircraft listed for sale.
In Q1 2021, higher quality, newer aircraft were the ones primarily selling, leaving older aircraft with lower quality ratings in the for-sale pool, resulting in the inventory fleet posting its worst ETP Ratio (Maintenance Exposure to Ask Price Ratio) on record, 74.4%. Aircraft with an ETP ratio of 40% or higher were listed for sale 69% longer than aircraft with lower ETP ratios. Maintenance Exposure (an aircraft’s accrued/embedded maintenance cost) increased for all jet market segments compared to Q1 2020, while Exposure for Turboprops decreased year-over-year.
“Across all segments, the pre-owned aircraft market was robust and active in Q1 2021,” said Tony Kioussis, president of Asset Insight, LLC. “Buyers snapped up late model, higher quality aircraft at an impressive rate. Owners with aircraft carrying higher Maintenance Exposure should expect to spend over 6-months more on the market than younger aircraft with less pending maintenance.”
On balance, Ask Prices were down across all market segments during Q1, year-over-year. During Q1 2021, Mid-size jets and turboprops posted increased prices, while Large and Light Jets saw decreases.
If you haven’t heard any of the episodes of the new Asset Insight podcast, it’s worth your time. With 30+ episodes covering the Aircraft Ownership Lifecycle, there are episodes that will interest aircraft buyers, sellers, owners, operators, experienced industry professionals, and those new to the industry. Asset Insight Podcasts are available on Apple Podcasts, Spotify, Stitcher, Google Podcasts, www.assetinsight.com, www.assetinsightpodcast.com, and wherever you get your podcasts.
Download the complete Market Report covering Q1 2021 here.
This press release was published by Asset Insight on April 22, 2021.
