According to Wing X, twenty days into the month of June 2022, global business aviation demand is on target to be the busiest June on record for flight activity.

Combined business jet and turboprop sectors are 10% higher than comparable 2021, 16% higher than comparable 2019. Dedicated cargo operations are slowing slightly, sectors down 5% compared to last year, however, up 2% compared to 2019. Reflecting widely reported cancellations and disruption, scheduled airline sectors are flying 25% less than in 2019, although this activity is up by 28% year on year.

North America accounts for 74% of global business jet and turboprop activity so far this month. Focusing on bizjets alone, sectors in the region this month are up 8% compared to last year, 19% higher than 2019. In week 24, from 13th to 19th June, business jet traffic in North America was up 7% compared to 2021, almost equal to week 23.

Bizjets in the United States are flying 7% more than last year this month, 24% more than three years ago. Despite this, in week 24 bizjets flew 1% fewer sectors than in week 23. In the last 4 weeks flights are up 8% compared to 2021. Part 135 and 91K activity slowed in week 24 down 4% compared to the same week last year.

Domestic bizjet travel in the US is still outpacing the recovery from pre-Covid in international sectors. So far this month the busiest international connection from the US is with Canada. Despite these connections being down 20% compared to June 2019, there has been triple digit growth compared to 2020 and 2021.

Teterboro – Lester B. Pearson is the busiest airport pair, triple digit growth compared to last year, but still down 7% below comparable to 2019.  The most popular Caribbean destinations have seen  some slowdown compared to last year. The first summer of unlocked transatlantic travel is evidently seen substantial growth in business jet connections with Europe.

In Europe, demand for business jet travel continues to eclipse 2019 trends and is so far well ahead of the strong rebound last summer. So far in June, business jet sectors are up by 25% compared to June 2021, keeping up with the 27% year on year growth trend in the last 4 weeks.

Private and Corporate flight departments have seen the biggest rebound this month compared to last year, flights up 66% as individuals and executives get back in their planes.

Paris Le Bourget remains the busiest bizjet airport so far this month, sectors are 75% above last year and 24% above 2019. Getaway resorts are seeing even bigger gains: business jet arrivals into Sevilla, Menorca and Samedan have more than doubled compared to June 2019.

The Art Basel festival in Basel, Switzerland is the biggest pull for business jet visitors in Europe this month. During the Monday – Sunday period of the event, the busiest origin points were Zurich, Linate and Le Bourget. Although daily arrivals into Basel were up by more than five times the normal, there was only 6% growth in landings compared the event back in 2019, some way behind the market trend. The other calendar event, the 24-hour motorcar race on 11th and 12th June, saw 30% fewer bizjet arrivals at local airports compared to three years ago.

Business jet activity has slowed during the month of June in Asia, flights in week 24 5% fewer than in week 23. All the same, the last 4 weeks´ activity is well up on last year, a 21% increase in terms of sectors flown.

Within Asia, 50% drop in China´s year on year business jet activity contrasts with triple-digit growth in flights in Singapore and Malaysia. Business jet activity in the Middle East keeps on rising, sectors up 38% compared to three years ago, 15% up compared to last year.

Not everywhere is booming; arrivals into the United Arab Emirates have slid back 2% compared to last year. Asia is more variable this month. The bizjet market in China is almost half of last June, whilst Singapore and Malaysia are seeing triple digit growth.

The number of preowned business jets for sale this month is down 54 percent from a year ago and the young inventory—those less than seven years—dropped 59 percent, according to analyst Jefferies. Overall, 2.3 percent of the fleet is available for sale, while average pricing is up 16 percent year-over-year.

Using Amstat figures, Jefferies reported that the decline in available inventory is across all aircraft categories but led by midsize jets, which are 60 percent below that of April 2021. Light and large-cabin jet inventories declined 51 percent and 52 percent, respectively, over the same period.

While sharply down from a year ago, the available inventory this month leveled off from March overall, Jefferies said. Some 580 aircraft are available for sale this month, according to the latest figures. This compares with 578 units last month and 1,270 in April 2021.

Broken down by OEM, Dassault inventory experienced the sharpest decline, down 76 percent with 12 units for sale, representing just 1.3 percent of the active Falcon fleet. This compares with 5.4 percent from a year ago.

The active Embraer fleet saw a 65 percent year-over-year decline in availability with 1.5 percent for sale, which Jefferies said is being led by Phenom inventory. Bombardier inventory slid 59 percent from April 2021 with 39 units for sale. Challenger availability is down 71 percent and Globals 61 percent. No preowned Global 7500s are for currently up for sale.

Gulfstream inventory dropped 56 percent year-over-year, to 28 units, with availability down from 3.4 percent in April 2021 to 1.5 percent this month. G550 availability slid by 18 units. As an aside, Jefferies also cited Amstat figures showing Gulfstream has produced the first 12 G700s, half of which ostensibly are customer bound, with six as test articles. The model is set to enter service later this year.

Cessna Citation inventory, meanwhile, is down 54 percent year-over-year, to 67 units, with the XLS/XLS+ declining by 19 units. This available inventory represents 1.7 percent of the active fleet.

As for pricing of preowned aircraft, the average for Gulfstream models is up 23 percent, to $23.6 million, led by a 119 percent increase for the G550. G650s carry an average price of $52 million, nearing the $67 million list price of new.

Bombardier prices are up 22 percent, to $13.5 million, led by a 43 percent jump for Challengers. This offsets a 25 percent dip in used Learjet pricing. Average list prices for preowned Cessna Citations are up 19 percent, to $4.3 million, Embraer pricing is up 16 percent, to $10.7 million, and Dassault pricing edged up 2 percent year-over-year.

January 18, 2022 – The pre-owned business aircraft market smashed numerous market records in Q4 2021 for the quarter, and for the calendar year, reports the Asset Insight AI² Market Report. With impressive transaction rates and values that, at times, significantly exceeded ask prices, 2021 pre-owned for-sale inventory closed 54% lower than EOY 2020. The Q4 AI² Market Report covers 134 fixed-wing models and 884 aircraft listed for sale. 

All aircraft groups posted record high demand  in Q4 2021. Average posted prices for the limited, heavily picked-over, aging fleet, decreased to a record low figure, while younger, low-time aircraft sold quickly through 2021, and especially in the 4^th quarter, often transacting without even being advertised for sale, and many times with aggressive bidding wars.

“21 months into the pandemic, business aviation continues to prove its value in the business world, globally,” said Tony Kioussis, president of Asset Insight, LLC. “Companies with staying power through the pandemic rely heavily on their business aircraft, with the industry expanding and the market reflecting the critical nature of this important equipment to businesses in all industries.” 

The quality of the remaining aircraft, and the Maintenance Exposure for those assets, statistically evidences the difficulty aging aircraft sellers are encountering remarketing these older aircraft, and the reason why the listed fleet’s Days on Market increased 11% during Q4 2021. The overall Quality Rating worsened (decreased) in Q4, with the remaining inventory staying within “Very Good” territory, but also carrying more near-term maintenance events.

“The attached material is the proprietary information of Asset Insight, LLC”  www.assetinsight.com

Download the complete Market Report covering Q4 2021