A-Tradex Aviation News

The market for a pre-owned aircraft is showing a stable recovery, while the demand for a new aircraft is lagging, stated in a JPMorgan’s monthly business jet report issued earlier this week. The report shows that used aircraft inventories fell 50 basis points in September down to 13.6 percent of the aircraft being in service. This is a second consecutive decline and another evidence, that this market is past its worst times.
The prices for used aircraft declined 1.8 percent in September and will continue to decline in the next several months predicts JPMorgan. Though, it wouldn’t be a steady decline.
Prices fell 24 percent since last November, on average. David Nadol III, aerospace analyst at JPMorgan says that prices are expected to continue declining, until inventories, that are expanded now, will decline further.
Besides that, it is expected to have a noticeable margin between improvements in the used jet market in which inventories remain much higher than at last year’s cycle, and an increase in demand for a new aircraft. JPMorgan expects October’s NBAA Convention to be smaller than in a past several years, because of a slow order activity and no expectations for a launches of a new aircraft. However some optimism is present due to improving situation at the used jet market.

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