Aero Asset single engine report: Drop in pre-owned sales, rising supply, pricing strong

Falling pre-owned single engine helicopter sales volumes and rising supply, leading to a higher absorption rate, is the picture revealed by Aero Asset’s 2023 Half Year Heli Market Trends Report.

Retail sales of 58 units, valued at $132m, fell by 60% in the first half of this year compared with the same period of 2022, said Valerie Pereira, vice president, Market Research at Aero Asset. “Supply for sale ended 70% higher year over year at 108 units available on the market, and the absorption rate increased to 8.5 months of supply at current trade levels.”

But average asking price remained strong, up 11% on last year, buoyed by arrival of low-time helicopters on the market. “Average trading price also remained strong against firm OEM lead time backdrop, increasing 23% year-over-year,” said Pereira.

The most liquid pre-owned single engine helicopter market during the first half of this year  was the Bell 407/GX/P/I followed by the Airbus AS350 B3/B3e/H125 and the Airbus EC130 B4/H130. The least liquid market during the first half was the Leonardo AW119K/Ke/Kx, with an absorption rate of 14 months.

Turning to market locations, North America displayed robust demand during the first half of  2023. North America buyers of pre-owned singles accounted for two-thirds of all pre-owned single engine helicopter transactions. But retail sales in Europe dropped 75% year-over-year. Combined sales in Europe and North America accounted for two thirds of the worldwide supply for sale.

This Heli Market Trends Report covered high end preowned single engine helicopters in production and variants with recent preowned sales activity. The Aero Asset research did not include new aircraft sales, leases, sale-leasebacks, early buyouts, sales to government, or part-out. Read the report here.