Quarterly Insights
2024-07-08
2024 Q2 State of The Market
View our comprehensive analysis of recent market trends.
MARKET HIGHLIGHTS
- After a blip of decreasing inventory in Q1, modern pre-owned jet inventory has increased again in Q2, now at 6.9% of the Active Fleet for sale, or a 0.7 percentage point gain compared to last quarter, which is the highest available inventory since 2020 Q4, when it was at 8.0% of the active fleet for sale.
- Retail transaction volume continued to be relatively strong in Q2, with 370 aircraft sold or a 16% increase year-over-year, which is the second quarter in a row with a quarterly year-over-year increase. The general consensus among industry experts thus far is that the pre-owned market is in a balanced buyer vs. seller dynamic and is expected to remain healthy with strong sales volumes through the remainder of the year, so long as the economy holds strong.
THE GLOBAL PRE-OWNED JET MARKET
- The below table helps to provide a glimpse into where the pre-owned jet buyers are coming from, given the overall gains in transaction volume year-over-year for the first two quarters of 2024. The data represents the market share of regions of the buyer in Top 60 pre-owned market transactions through the first six months of each year. As we can see, South/Central America has gained significant market share since 2019 and has thus far surpassed Western Europe for second place behind North America.
- Additionally, North America has lost a portion of its market share lead over the last two years. This is in part driven by an increase in the “Unknown Buyer” transactions bucket, which, in granular review, are likely still U.S. buyers using trusts, as the majority of aircraft remain N-registered.