As the third quarter draws to a close, I thought now would be a good time for a brief update on today’s turbine aircraft market conditions and some of the headwinds we are currently facing. After a brief pause in activity during Q2 after sweeping global tariffs were announced on products manufactured outside the United States, things picked up again during Q3 as lower tariffs were negotiated, and several exemptions were implemented on aircraft and aircraft parts. And, because of a very strong first quarter, year to date numbers still ended up being strong.
Although the tariff situation is still somewhat fluid, some reasonable solutions have been negotiated for most aircraft manufactured overseas. The official direction issued last week confirmed that imports of aircraft from the EU are now eligible for zero-tariff treatment, retroactive to September 1, 2025. Aircraft and parts manufactured in Brazil still face a 10% tariff and those from Switzerland face a 39% tariff, causing Pilatus to pause deliveries to the U.S. Aircraft and aircraft parts manufactured in Canada that meet USMCA standards remain exempt from import tariffs. All that to say, if you are considering purchasing an aircraft manufactured outside the U.S, I strongly recommend consulting with a qualified customs broker and trade compliance attorney to guide you through the process.
Because of the second quarter pause, inventory levels on turbine aircraft increased slightly during the summer months, bringing the percentage of jet aircraft for sale up to 7.5% of the current fleet. However, those aircraft coming to market tend to be older, higher time aircraft, as the supply of low time, current production aircraft remains extremely limited. Average asking prices actually increased significantly during those same months, due to a significant amount of heavy iron coming to market.
Transaction levels during the summer months remained solid, but the market is now picking up even more as only 3 months remain to get an aircraft placed in service in time to qualify for 100% depreciation to be reflected this year. As you can see on the Business Jets Market Summary Business Jets Market Snapshot (See attached), December of 2024 reflected a large jump in jet transactions from the previous months, and I expect to see a similar bump in transactions levels this December.
Turbo-props have also experienced an increasing supply Turboprops Market Snapshot (See attached), though their numbers have been going up all year and prices have been mostly stable for the last 12-months. Supply currently sits at 5.1% of the total fleet, and I think we can expect December to reflect a bump in transaction levels in line with what was demonstrated December of 24 on turbo-props as well. Like the jet market, low time, current production aircraft are in high demand with few options readily available.
I told most of my clients months ago that, if they want to place an aircraft in service by year-end, it would be advantages to start the process early, because of all the demand I expected to surface this time of year, and the limited pre-purchase inspection slots that would be available at the preferred shops. That is proving to be very true. We have multiple acquisition agreements now in place, but we find ourselves in direct competition with other brokers looking for the same aircraft. The OEM’s backlog remains quite long (2 – 2.5 yrs depending on the model) driving many operators to consider slightly used options that can be placed in service this year.
One piece of good news I received this morning concerns the looming Government shut down. In previous years, when a government shutdown went into effect, it could cause significant delays in closing aircraft transactions. However, this year, we have received a communication that the public documents room will remain open and it will be “business as usual”. That is very good news for those who need the aircraft placed in service this year. In the past when that room closed, even once it opens again, the backlog of transactions tended to pile up and closing delays were significant.
I hope you find this update helpful. If you have any questions on any of this information, would like some additional information on any particular market, or might like to know what your current aircraft might be worth, please don’t hesitate to reach out. Also, I do plan to be in Las Vegas for the NBAA trade show in two weeks, so if you will be there, please let me know so maybe we can carve out some time for a cup of coffee or short visit.
Kind regards,
Toby J. Smith – Vice President
(918) 630-4548 Mobile
Toby.smith@jbajets.com
Toby Smith is Vice President of JBA JETS and has been helping customers buy and sell turbine aircraft for 17 years. He operates a satellite office located at the Atlantic Aviation FBO in Tulsa, Oklahoma.