#United States #Lincoln #Sandhills Global #aviation market #Aircraft Inventory

Overview

The used aircraft market has recently experienced notable changes. In January, inventory levels on platforms such as Controller.com and those managed by Sandhills Global decreased across most categories. This downward trend is a key indicator of market dynamics in the aviation sector.

Inventory Insights

According to the latest reports, used jets experienced a month-over-month inventory drop of 5.85%, but interestingly, there was a year-over-year increase of 9.48%. The light jet sector notably faced a significant decrease of 10.2% from the previous month, while the mid-size jets witnessed a rise in inventory, up by 26.87% annually. This shows a complex landscape, where while current inventory levels are down, specific categories are seeing growth.

Moreover, the used piston single aircraft market has seen a significant year-over-year decline in inventory by 28.29%, continuing a consistent downtrend for six months. However, average asking prices for these aircraft only experienced minor changes, up by 0.84% month over month.

Turboprop and Helicopter Dynamics

Conversely, the turboprop inventory also continued its downward trajectory, decreasing by 11.15% month over month and 1.79% on a yearly basis. Despite falling inventory levels, asking prices have shown resilience, climbing 0.53% month over month and 1.33% year over year. This indicates a possible tightening supply, which typically drives prices higher.

The market for used Robinson piston helicopters has also been aligning with the general trends, with an inventory drop of 22.52% month over month and 40.28% yearly. Interestingly, their asking prices are somewhat stabilized, reflecting a 1.67% month-over-month increase, although there is a slight 0.87% decrease when compared year over year.

Expert Opinion

Brant Washburn, the Controller Department Manager, remarked, "Inventory levels have been trending lower across the industry, but we expect a rebound by the end of this quarter." This statement hints at a possible stabilization or recovery in the used aircraft market, pending further economic indicators.

Price Trends

When observing the asking prices across categories, notable trends emerge. For instance, the asking prices for used jets rose by 2.16% month over month, demonstrating a bit of strength despite mixed inventory trends. However, the larger jets showed a significant uptick in asking prices that was more substantial than other categories. This mixed performance suggests that while inventory levels are falling, the pricing dynamics are still very much dependent on the specific class of aircraft.

Conclusion

In summary, the landscape of the used aircraft market is undergoing notable shifts as of January. While inventory levels are decreasing across various aircraft types, asking prices portray a more complex picture. The upcoming months may provide clearer insights into whether these trends will stabilize or evolve further. With such insights available from the Sandhills Equipment Value Index and other tools, both buyers and sellers have invaluable resources to navigate these changes effectively.