2Q & 3Q Market Overview
Can we go back to activity levels from Q1, please? Q2 and Q3 have really started to slow down with the closing of transactions in the marketplace. According to Jetnet Marketplace, there were 643 transactions in Q1, 621 transactions in Q2, and 358 transactions in Q3.
Q3 numbers will increase over the next few months as more of those transactions are recorded. Everyone we talk to is anticipating the Q4 sales to increase due to the 100% bonus depreciation ending at the end of 2022. (Fingers Crossed)
Here at HeliValue$, we are seeing most transactions in the corporate / VIP configured aircraft right now, with utility aircraft trailing behind. Supply for the medium twin aircraft continues to shrink for the desirable models, such as the AW109S, AW109SP, AW139, 429, and EC145/H145 platforms. Supply for the light single aircraft also continue to shrink for the desirable models, such as the 206L4, 407, 407GX, 407GXP, AS350B2, AS350B3, and 505. The heavy twin market continues to shrink down to only a few aircraft available worldwide as they are all put back to work. Lease rates continue to climb for the most part with the lessors controlling the majority of the offshore market transactions these days.
While we are optimistic about what is to come in the fourth quarter of this year, rising interest rates worldwide are starting to hit home for many buyers out there. How far are the Feds willing to go to combat this inflation? Some say they are on their way to sending us right into another recession, while others think this might be the new norm. On the other hand, helicopter values have historically followed the price of oil which is not the case anymore. With the roller coaster of oil prices over the past few years, the helicopter values are falling in line with the markets they serve in. This could be a good thing that will add more stability to the market, and now we just need to find homes for the older models and models with excess inventory still sitting around, and everyone would be happy.
If by chance you are a helicopter owner or operator and are seeing something other than what we are publishing, please give me a call at 1-847-487-8258 or send me an email at jason.kmiecik@helivalues.com and I will be happy to discuss the market with you. If you have any sales you would like us to know about, I would also be happy to discuss them with you. Without your willingness to share information, we wouldn’t be here to keep the industry informed and up to date.
