Recovery of Used Piston-Single Aircraft Markets Post-January Lows

Recovery of Used Piston-Single Aircraft Markets

The used aircraft market has been navigating through fluctuating trends recently, particularly concerning piston-single planes. According to Sandhills Global's aviation market report for May, the inventory levels for various used aircraft categories are showing intriguing trends as they recover from the lows observed in January.

Current Market Overview

In May, Sandhills Global reported that inventory for piston-single aircraft in the United States and Canada experienced a surge of 2.73% month-over-month (M/M). However, when comparing this to the previous year, inventory levels have fallen by 17.65% year-over-year (YOY), indicating that while there is an uptick from recent performance, the overall inventory is still lower than historical averages.

In contrast, asking values for these aircraft are experiencing a decline, with a minor drop of 0.03% M/M and 0.42% YOY. This stagnant trend in asking prices suggests that while inventory may be rebounding slightly, pricing adjustments are still being adopted to match market realities.

Contrarily, the global used turboprop aircraft market exhibited a stable trend with no M/M changes but recorded a 9.01% YOY decline in inventory. Remarkably, prices for turboprop aircraft are on the rise, climbing by 3.35% M/M and 0.7% YOY.

Insights from the Data

Terrin Mohl, Controller Department Manager at Sandhills, expressed optimism regarding the recovery process in various segments of the used aircraft market, particularly highlighting the recovery from January and February lows. He stated, “While inventory remains lower than last year's levels, the used piston single, turboprop, and large jet markets are showing signs of recovery.”

For the global used jet market, inventory levels crept up by 2.37% M/M while recognizing a 3.25% YOY decrease, which perpetuates a downward trend overall. Large jets showcased the most notable M/M inventory increase at 7.87%.

Long-Term Trends

The Robinson piston helicopters segment has faced a different narrative, with inventory levels witnessing a 24.66% M/M increase but a troubling 33.09% YOY reduction. Surprisingly, asking values also reported a 2.12% M/M rise; nonetheless, they have decreased by 6.52% YOY, signaling ongoing instability within this sector.

Conclusion: Navigating Forward

The data presented through Sandhills Global's reports encapsulates a crucial moment for used aircraft dealers and potential buyers alike. While some aircraft categories, notably the piston-single and turboprop segments, appear to be bouncing back from severe inventory lows, prospective buyers should remain cautious due to fluctuating pricing dynamics. The landscape is continually evolving, necessitating careful analysis and market tracking to navigate these changes effectively.

For extensive insights and continuous updates regarding used aircraft inventory, dealers can subscribe to Sandhills Global platforms and leverage tools like the Sandhills Equipment Value Index (EVI) to inform their decisions. By utilizing this data, buyers and sellers can better navigate the complexities of the used aircraft market and capitalize on opportunities as they arise.