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09/06/2021

Key Aircraft Values Trends to Expect in July 2021

In anticipation of IBA’s forthcoming July Mid-Year Aircraft Values Update Webinar, we have been looking ahead at some key aviation industry trends to expect in aircraft valuations. Though many will not see base value adjustments for many aircraft asset types, we are forecasting further market value softening in 2021 for some.

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New aircraft values will increase

Our forecasts show the values of new aircraft will increase slightly. Solid demand has resulted in lease rate factors reducing almost to 2019 levels.

 

  • Airbus A321 aircraft values are among the strongest performers, particularly in sale and leaseback transactions with top tier credits.

  • Airbus A350 values and Boeing 737 Max values are likely to remain steady, although some adjustment may result from secondary market availability.

  • Boeing 787-800 values are expected to soften due to fewer deliveries, and the slightly older age profile of the fleet

 

 

A Graphic Depicting Aircraft Value Performance of New Aircraft Models

Source: IBA’s InsightIQ Aircraft Values Data

Values of older aircraft values will decrease

IBA believes that many widebody aircraft aged over 10 years old aircraft (and other airframes of that age) will see softening market values.

 

  • The Delay of the Boeing 777X program until at least 2024-25 will keep the Boeing 777-300ER within fleets for an extended period.

  • The Airbus A330’s freight conversion P2F potential makes it the natural successor to the Boeing 767, but oversupply of the A330 in the market may take time to clear.

  • The Boeing 737-800 is at a premium over the Airbus A320. This has been boosted by the 737’s strong freighter potential, as well as delays to the 737 Max program.

 

If you have any further questions please contact Mike Yeomans.

 

 

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