4Q Market Overview
On January 10, 2024, the last pricing meeting for
FY 2023 took place. During the fourth quarter, the helicopter market showed a slowdown in most areas. Asking prices and inventory remained steady for all but a few models. Moving into 2024, the U.S. is in an election year, which, as history repeats itself, will change the market dynamics again. Interest rates have finally leveled off, and there is talk of rates dropping in FY 2024. However, with inflation still higher than most would like, it remains to be seen if or when this might happen. Here's an overview of the market as we see it:
- Pistons are holding strong, with transactions across all models within published pricing parameters.
- Light Singles are the favored aircraft this past quarter, with many popular aircraft seeing more demand and rising values. Examples include the Bell 206B Series, Bell 206L Series, the Bell 407 Series, and Bell 505 JRX.
- Light Twin transactions have remained slow, except for the Leonardo A109E Power, which still has a very active market. With the increasing cost to overhaul the Airbus AS355 Series engines, more and more aircraft are going to "Part Out" situations when the engines come due for overhaul.
- Medium Twins transactions have remained slow. There is an increasing supply, and the asking prices continue to fall. On the upside, we are starting to track more Bell 412 Series sales again as they are beginning a comeback with lower price points than similarly sized aircraft. Now that Sikorsky is terminating the PAP program for the S76 Series models and Pratt & Whitney of Canada is terminating the engine PBH program on the S76B model, future buyers are slimming down even more.
- Heavy Twins remain stable for the most part as supply is very limited now.
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.
