By Kevin McCutcheon, President & CEO, Flight Solutions

The used business jet market in 2025 presents a nuanced landscape, balancing an increase in inventory with softening prices. Following the extraordinary demand surge seen during the pandemic, the market is now stabilizing as supply and demand move toward equilibrium.

Inventory Trends
Inventory levels for used business jets have been on the rise, though growth appears to be tapering off. As of January 2025, the market saw a 7% increase year-over-year, bringing the total inventory to 1,158 aircraft. However, the rate of growth has slowed in recent months, with a 4% decline over the past six months.

March 2025 data further underscores this trend: while inventory was up 20% compared to the previous year, it recorded a modest 1% decline month-over-month. These figures suggest that while more aircraft are available than in prior years, the rapid surge in inventory may be stabilizing.

Pricing Adjustments
Alongside shifting inventory levels, pricing trends indicate a cooling market. Prices have declined by 9% compared to the same period in 2024. The buying frenzy that characterized the pandemic years has subsided, leading to a more measured market. Since the market peak between 2021 and 2023, prices have dropped approximately 10% across the board.

Despite the overall decline, pricing dynamics vary by aircraft category. Light jets have maintained an average asking price of approximately $3 million. Large jets, in contrast, experienced an 11% increase, reaching an average price of $14.6 million. Midsize jets faced the sharpest decline, dropping 13% to close the year at $4.75 million.

Market Dynamics and Buyer Behavior
The pre-owned segment continues to hold the largest share of the business jet market. Several factors contribute to the sustained interest in used aircraft:

• Lower acquisition costs make pre-owned jets an attractive entry point for first-time buyers and cost-conscious corporate operators.
• Slower depreciation compared to new aircraft enhances their appeal as a stable investment.
• Broad model availability allows buyers to find aircraft that meet specific operational needs without the long lead times associated with new jet orders.

Charter services, corporate buyers, and private owners all contribute to the steady demand for pre-owned jets, ensuring that the market remains active despite price corrections.

Future Outlook
Looking ahead, the used business jet market is expected to continue its stabilization trend. Prices are likely to return to pre-pandemic levels, avoiding the dramatic fluctuations seen in recent years. Additionally, as owners upgrade to newer models and fleet operators retire older aircraft, pre-owned inventory is anticipated to gradually increase.

While the days of record-high valuations may be behind us, the used business jet market remains robust. Buyers and sellers alike should approach the market with a strategic perspective, leveraging current trends to make informed decisions in an evolving landscape.

Kevin McCutcheon is a 40-year industry veteran and President & CEO of Flight Solutions, with over half a billion in business aircraft sales experience. He specializes in business jet market analysis and acquisitions.

Index returns to positive territory on election optimism

Indicator at 52: Our Barclays Business Jet Indicator (BBJI) increased 27% with our index at 52, with above 50 indicative of an improving market. Our straight-up measure of overall business conditions came in at 6.4 (0-10 scale), 6% higher, indicative of better-than-normal market conditions.

View on market/stocks: Our survey index has historically been well correlated with manufacturers’ book-to-bill, with current index levels in the low 50s aligning with a ~1.2x bookto-bill (Fig 8). We expect extended backlogs (two-to-three years) with higher pricing will allow for manufacturer delivery growth and improved margins over the next few years, with current manufacturer supply at only ~4% of the installed base. We have Overweight ratings on GD/TXT. GD currently trades at a ~20% discount to the market while TXT trades at a ~40% discount.

Index components: The increase in our index reflects a 62% improvement in outlook, a 44% increase in dealers’ willingness to increase inventory, a 32% increase in pricing and a 27% increase in customer interest. All of our index components, other than pricing, are now in positive territory (>50).

Election: When asked about the impact of the election on the market, a large majority of respondents see it as positive for the bizjet market. Specifically, 70% see it as slightly positive (53%) to significantly positive (17%) as compared to only 6% that see it as slightly negative.

G700: When asked about timing of G700 deliveries, 81% don't see deliveries accelerating until mid-to-late 2025. A much smaller 19% see deliveries accelerating in early 2025. We estimate only two G700 deliveries so far in Q4 as compared to GD guidance for 27 in Q4 (14 in Oct/Nov).