IBA, the leading aviation data and advisory consultancy, has delivered a presentation on the key trends impacting the global aviation sector to the Japanese investment community.
In a webinar delivered yesterday to over 100 representatives from Japanese financial institutions and lessors, Dr Stuart Hatcher, IBA's Chief Revenue Officer, Mike Yeomans, Director of Valuations and John Duley, its Tokyo-based Business Development Manager, presented a range of insights on key challenges facing the aviation sector today.
These included aircraft utilisation levels globally - which have now recovered to 65% of pre-pandemic levels for domestic routes, but are still half those of the most recent peak in 2019 when including international routes. With many international borders remaining closed, domestic flights currently account for 80% of all aircraft movements, according to data from IBA's InsightIQ platform. IBA forecasts a difficult Northern Hemisphere summer ahead as some countries grapple with growing Covid-19 infection rates whilst others push forward with advanced vaccination programmes.
Since the start of 2020, 44 airlines have either gone into administration or are restructuring, affecting a combined fleet of around 1,500 aircraft. IBA believes that these figures would be significantly higher were it not for different forms of government intervention across the globe to financially support airlines.
This has affected the number of aircraft being retired each year, which IBA forecasts will rise from under 600 in 2020 to around 800 in 2024. At the same time, the age of aircraft at retirement has decreased in 2020, in the narrowbody, regional jet and turboprop categories.
The pandemic has also driven a drop in aircraft trading and leasing activity in the past year. In 2020, around 2,500 sale and lease events were recorded by IBA's InsightIQ platform, compared to 3,700 events in 2019 - a decline of 31% year-on-year.
Aircraft deliveries have also fallen dramatically in 2020 to under 800 aircraft, compared to around double that figure in 2018. IBA forecasts that deliveries won't return to that level until 2025. It also anticipates that COMAC will surpass Embraer and will rank behind Airbus and Boeing.
While the values of all narrowbody aircraft have fallen, performance has varied significantly with a steeper value fall for the Boeing 737 MAX8 from US$51 million in January 2020 to US$45.2 million 12 months later. By contrast, the value of the Airbus A320neo fell from US$52.1 million in January to US$48.7 million six months later, but had already recovered slightly to US$48.9 million by January 2021.
Values of new build examples of new generation widebody aircraft such as the Boeing 787-8 and Airbus A350-900 have remained relatively stable, particularly in the second half of 2020, falling between just 5-7%. By contrast, the value new build current generation aircraft such as the Boeing 777-300ER fell by almost 14%.
Stuart Hatcher, IBA's Chief Revenue Officer, says: "The aviation industry has always proven resilient, and it will prevail through this challenging environment. The only difference from previous crises is the length of the recovery which we believe will take up to five years."
The IBA webinar slides can be downloaded from here.
IBA has over 30 years' experience in delivering independent, expert business analysis and data on the aviation sector. Established in 1988, it provides a wide range of services including InsightIQ, a one-stop intelligence platform combining speed, accuracy, visual analytics and intuitive navigation
IBA advises prominent investment funds and banks, aircraft leasing companies, operators, manufacturers and MROs. In April 2021, IBA was named 'Appraiser of the Year' by Airline Economics.
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IBA, the 2021 Appraiser of the Year, provide an overview of the Japanese aviation market. In this session IBA discuss trends across aviation finance in Japan and Asia Pac. Using analysis from InsightIQ, join Stuart Hatcher, Chief Revenue Officer, Mike Yeomans, Director - Valuations and John Duley, Business Development Manager - Asia, as they discuss the following topics: Aircraft value performance The changing face of Airline Fleets Possible Airline Failures OEM activity What are the changing trends in Retirements? Transactional Activity - Trading Sales and Capital Activity The slide deck is available to download here. If you have any further questions, comments or feedback please get in touch: John Duley
加入IBA经验丰富且屡获殊荣的估值专家们，共同参与我们全新的网络研讨会系列，更加清楚地了解您的飞机资产的价值以及价值和租金变化背后的驱动力——'直面新冠的挑战'。 此次网络研讨会，我们探讨了以下问题及议题： IBA的飞机估值和租赁费率在不同资产类别下（窄体，宽体和涡轮螺旋桨飞机）是如何表现的？ IBA最近的市场波动背后的驱动力是什么？ 不同年龄和世代的飞机如何以及为什么受到不同的影响？ IBA变更基础价值的依据是什么？ IBA对2021年可能发生的事情有什么看法？ 幻灯片可在此处下载。 希望这次网络研讨分享的深刻见解能对您的工作带来启发和帮助。如果您有任何进一步的问题，意见或反馈，请联络: Mike Yeomans