Ongoing Supply Constraints in the Pre-Owned Aircraft Market Amidst Declining Inventory Levels
The latest aviation market reports from Sandhills Global reveal a persistent decline in inventory levels within the used aircraft sector. Analyzing data from June, we observe notable declines across several categories including pre-owned jets, single-engine pistons, turboprops, and Robinson piston helicopters. These trends point to tightening supply that is likely to affect pricing and availability moving forward.
Global Used Jet Aircraft
In June, the pre-owned jet aircraft market showed a downward trend in inventory. Month-over-month (M/M) levels fell by 0.15%, leading to a significant year-over-year (Y/Y) decrease of 19.21%. Among jet categories, the super mid jet segment saw an increase in inventory of 8.55% M/M, contrasting with the large jet segment, which experienced a dramatic 40% decrease Y/Y. This indicates a growing demand for super mid jets while larger jets may be less desirable in the current market. Moreover, asking prices have also decreased, dropping by 2.28% M/M and 4.48% Y/Y. The super mid jet category particularly faced a notable M/M asking value decline of 4.4%.
Used Piston-Single Aircraft
The inventory of used single-engine piston aircraft has seen a slight uptick, increasing by 2.48% M/M in June. However, a stark 14.08% decrease Y/Y suggests a shrinking market. Additionally, asking values for these aircraft have trended downward, with a decrease of 0.61% M/M and 0.74% Y/Y, reflecting the challenges faced by sellers in a tight inventory environment.
Global Used Turboprop Aircraft
In the turboprop category, a downward trend in inventory has persisted for seven consecutive months. June saw a decline of 5.15% M/M and 13.67% Y/Y in inventory. Interestingly, despite the declining numbers, asking values have risen by 3.12% M/M and 3.32% Y/Y, showcasing a potential increase in demand or value perception for turboprop aircraft, suggesting market resilience in this segment.
Global Used Robinson Piston Helicopters
The used Robinson piston helicopter market follows a similar trend, with inventory falling by 7.45% M/M and 17.14% Y/Y. Asking values experienced a slight decline of 3.14% M/M, while maintaining a 3.05% Y/Y increase. This may indicate that, despite tighter supplies, aircraft owners are holding out for better offers.
Terrin Mohl, a sales manager at Controller, commented, "The aircraft inventory remains limited, especially amongst jets and turboprops, suggesting a tightening market. We’ve been witnessing substantial inventory declines, particularly in the turboprop segment, over the last six months. While single-engine piston aircraft have remained stable, the overall outlook suggests that competition for quality aircraft is increasing.
This report from Sandhills Global not only emphasizes current inventory and pricing trends but also provides a forecast for stakeholders involved in the buying and selling of used aircraft. These insights are critical for making informed business decisions in an increasingly competitive landscape. One vital metric provided in these reports is the Sandhills Equipment Value Index (EVI), which serves as a benchmark for estimating market values of used assets across various segments, including aviation. By leveraging this data, buyers and sellers can navigate the complexities of the market effectively.
Sandhills Global’s comprehensive analysis tool, AircraftValuation, employs advanced technologies to accurately assess aircraft value. Companies looking to explore this market can access these insights through trusted platforms such as Controller.com.
Global Used Jet Aircraft
In June, the pre-owned jet aircraft market showed a downward trend in inventory. Month-over-month (M/M) levels fell by 0.15%, leading to a significant year-over-year (Y/Y) decrease of 19.21%. Among jet categories, the super mid jet segment saw an increase in inventory of 8.55% M/M, contrasting with the large jet segment, which experienced a dramatic 40% decrease Y/Y. This indicates a growing demand for super mid jets while larger jets may be less desirable in the current market. Moreover, asking prices have also decreased, dropping by 2.28% M/M and 4.48% Y/Y. The super mid jet category particularly faced a notable M/M asking value decline of 4.4%.
Used Piston-Single Aircraft
The inventory of used single-engine piston aircraft has seen a slight uptick, increasing by 2.48% M/M in June. However, a stark 14.08% decrease Y/Y suggests a shrinking market. Additionally, asking values for these aircraft have trended downward, with a decrease of 0.61% M/M and 0.74% Y/Y, reflecting the challenges faced by sellers in a tight inventory environment.
Global Used Turboprop Aircraft
In the turboprop category, a downward trend in inventory has persisted for seven consecutive months. June saw a decline of 5.15% M/M and 13.67% Y/Y in inventory. Interestingly, despite the declining numbers, asking values have risen by 3.12% M/M and 3.32% Y/Y, showcasing a potential increase in demand or value perception for turboprop aircraft, suggesting market resilience in this segment.
Global Used Robinson Piston Helicopters
The used Robinson piston helicopter market follows a similar trend, with inventory falling by 7.45% M/M and 17.14% Y/Y. Asking values experienced a slight decline of 3.14% M/M, while maintaining a 3.05% Y/Y increase. This may indicate that, despite tighter supplies, aircraft owners are holding out for better offers.
Terrin Mohl, a sales manager at Controller, commented, "The aircraft inventory remains limited, especially amongst jets and turboprops, suggesting a tightening market. We’ve been witnessing substantial inventory declines, particularly in the turboprop segment, over the last six months. While single-engine piston aircraft have remained stable, the overall outlook suggests that competition for quality aircraft is increasing.
This report from Sandhills Global not only emphasizes current inventory and pricing trends but also provides a forecast for stakeholders involved in the buying and selling of used aircraft. These insights are critical for making informed business decisions in an increasingly competitive landscape. One vital metric provided in these reports is the Sandhills Equipment Value Index (EVI), which serves as a benchmark for estimating market values of used assets across various segments, including aviation. By leveraging this data, buyers and sellers can navigate the complexities of the market effectively.
Sandhills Global’s comprehensive analysis tool, AircraftValuation, employs advanced technologies to accurately assess aircraft value. Companies looking to explore this market can access these insights through trusted platforms such as Controller.com.
Topics Business Technology）
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