June 2017 Business Aircraft Market Update

The business jet market shows signs of slightly weakening, according to UBS’s latest Business Jet Market Index. The index, which measures market strength based on business aviation and financial industry surveys, dipped 4 percent from the previous survey, coming in just below the break-even level at 49.

UBS noted the survey had remained around the break-even measurement of 50 since it bounced up late last year. “This move is beginning to resemble the false start that we saw in late 2014/early 2015,” the analyst said.

The market for small-cabin aircraft leads the index at 52, but that is down by 6 percent from last month. The midsize-cabin market measured at 49, while the large-cabin sector was the weakest, measured at 46.

While customer interest appears lower, it is “still near post-crisis peak,” UBS notes. Factors contributing to the softened results include a limited willingness on the part of dealers to increase inventory, weaker customer interest and lower pricing. However, these are offset by lower inventory levels, UBS said, and “our customer interest score…remains near its high since the financial crisis.” North America customers show the strongest interest, followed by Europe and Asia.