Used inventory 17% lower yoy in april, down to less than 9% of installed base, the lowest since before the financial crisis. Inventory levels for young used aircraft (0-10 year old), which are most important as a comparable to new aircraft, are at 5.5% of installed base (including 0-5 year aircraft at 4.0% and 6-10 year at 6.9%) with young inventories down 35% yoy. Young inventory is approximately 250 bps below long-term average levels and now roughly in line with pre-financial crisis levels.

By cabin size, 0-5 year used are at post financial crisis lows at 4% for all three cabin classes (small⁄midsize⁄large). For 6-10 year used, all three classes are about in line with post-crisis lows including small cabin at 6% and midsize⁄large at 7%.

North america only ,5% young used available. Among the manufacturers, inventory levels are lowest for embraer at 5% of fleet and gulfstream at 7%. Among young (0-10 year) aircraft, inventory is low at approximately 5% for all manufacturers other than dassault.

Used prices have held roughly flat ytd, although were 2% lower yoy in april (r3m). by cabin class, used pricing is improving slightly for small and large cabin (+1% yoy), while midsize pricing continues to decline (-10% yoy).

All the ingredients for bizjet turn look in place: after nearly a decade at trough levels, key business jet market indicators now all signal improvement, including much lower used inventory levels along with stable used pricing, increasing flight activity and higher corporate capx. In addition, our survey of industry professionals indicates rapidly improving market conditions, corroborated by recent positive commentary from oems and suppliers. Among our coverage, we see bbd/gd/txt (all rated overweight) as the primary beneficiaries of improving industry conditions.