The latest UBS Business Jet Market Index fell 4 percent month-over-month, to 49, and is “still stuck” around break-even level (50) following a post-U.S. election bounce late last year. By cabin size, the light jet index fared best at 52, but is down 6 percent sequentially. This was followed by midsize jets at 49 and large-cabin at 46, both falling 2 percent from the prior month. However, UBS’s “straight-up measure” of absolute business conditions remained unchanged at 5.2.

On a more positive note, pre-owned business jet inventories shrunk 2 percent sequentially and 4 percent year-over-year, representing 11 percent of the installed base. Notably, inventory levels of very young (zero to five years old) jets were 8 percent lower month-over-month and down 14 percent from a year ago. Thus very young inventory accounts for just 5 percent of the installed base, according to UBS aerospace analysts David Strauss and Darryl Genovesi.

Business jet cycles were also up 6 percent year-over-year in May, marking the 10th consecutive month of such increases, UBS said. Charter flying soared 13 percent in May, while non-charter activity increased 3 percent. But the UBS analysts did caution, “Although seasonally adjusted cycles are 45 percent above the 2009 trough, we estimate per-aircraft utilization rates are still at trough levels given continued fleet growth.”