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One graph from JETNET shows where we are right now in the storm of business jet sales

Last year brought unprecedented demand in the world of preowned private jet sales, and 2022 has only watched that trend compound. The latest JETNET IQ Analysis provides further evidence, especially when it comes to aircraft delivered new in the past five years. As of May 8, according to JETNET, there were 744 business jets listed for sale on its index. Only 8% of those aircraft were delivered new since the beginning of 2017. If a buyer is looking for an Embraer Phenom 300, a Pilatus PC-24, a Citation Latitude, a Gulfstream G280 or a Dassault Falcon 8X, he or she is not going to find one that rolled out of the factory within the past five years. "Buyers with very specific requirements - model, age, registration, specification, paint and interior - continue to have exceptionally few choices available to them," JETNET iQ Creator/Director Rollie Vincent wrote. Vincent also touched on the bloodshed in Ukraine and the ripple effect that Russia's actions and resulting sanctions have had on the business aviation industry, urging caution across the industry, whether you are in aircraft sales or you run an FBO. "While we can take solace in strong order backlogs and book-to-bill performance at the aircraft manufacturers, isn't it ironic that supply chain woes - largely self-induced by decisions in early 2020 to shut down aircraft factories and furlough people - have come full-circle to limit our collective abilities to push forward the throttles and accelerate today's production rates?" Vincent wrote. "Like a built-in safety valve, the long-cycle nature of our business is something that (I would argue thankfully) protects us, sometimes from ourselves." Meanwhile, the delicate balance of production uptick and labor shortage continues to drive the current of the private jet market. This week Embraer announced it is seeking to hire 1,000 workers in Brazil to help address the growing demand for new aircraft. Even after aircraft makers such as Textron Aviation and Gulfstream reported giant surges of backlogs in their first-quarter earnings reports, Embraer expects even more of a surge. RELATED: Plane makers report increased profits, staggering aircraft backlog in earnings statements"According to the estimates already presented to the market, this year the volume of aircraft deliveries will increase between 15% and 25% compared to the previous year" the company said in a statement announcing the job openings. "The growing flow to recover the company's full potential is expected to continue for the coming years, in line with reports presented by the International Air Transport Association (IATA)." While that demand continues to place pressure on the preowned aircraft sales market, Vincent stresses to remain calm within the storm. "With strong inflationary pressures on wages, fuel prices, and interest rates - before a vicious Eastern European war which shows no signs of abating anytime soon - the good ol' days of the recent past already seem distant," he wrote. "If past is truly prologue, and if we learned anything from the 2008 downturn that is need-to-know now, we should not overreact to the super-demand pressures in today's marketplace." Download the JETNET iQ Analysis here.
Created 8 days ago
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