IADA Q4 market report shows resilient demand, strong dealer confidence and solid deal flow

The International Aircraft Dealers Association (IADA) has released its Fourth Quarter 2025 Market Report, revealing a resilient and active global business aircraft marketplace.

The preowned business aircraft market was driven by strong year-end demand, favorable tax policy, improved financing conditions and sustained confidence among IADA-Accredited Dealers and Certified Brokers.

Based on verified transaction data reported monthly by IADA-Accredited Dealers, combined with the association’s proprietary IADA Member Perspective Survey, the report shows that market sentiment and activity strengthened in the fourth quarter to the highest levels recorded in 2025, capping another strong year for the preowned business aircraft sector. The fourth quarter survey indicated that bonus depreciation, lower interest rates and tight inventory underpinned a balanced market heading to 2026.

“Despite early-year uncertainty, IADA members delivered strong results throughout 2025 and closed the year with solid momentum,” said John Odegard, Chair of IADA and Co-Founder and Partner of 5X5 Trading, an IADA-Accredited Dealer.

“Higher fourth-quarter activity reflected a healthy, disciplined market supported by bonus depreciation, improving interest rates and tight inventories, conditions that continue to favor experienced, professional dealers who can execute complex transactions,” Odegard added. “As we look ahead, our members remain confident in the core fundamentals of the business aviation marketplace.”

Strong dealer performance and verified transaction data

IADA-Accredited Dealers monthly reports provide one of the clearest and most transparent views of the global preowned business aircraft market available anywhere in the industry.

Key transaction highlights from the Fourth Quarter 2025 Market Report include:

• 1,630 closed aircraft deals, the fourth consecutive year of increased annual transactions
• 173 new acquisition agreements reported in Q4 2025, up 33% year-over-year compared to Q4 2024
• Full-year 2025 acquisition agreements increased 9% versus 2024
• Exclusive retainer agreements to sell aircraft declined 15% quarter-over-quarter and 11% year-over-year in Q4, reflecting tight inventory and selective seller behavior
• 807 exclusive sell-side retainers signed in 2025, compared with 1,176 in 2024.

IADA dealers also reported that fewer aircraft were discounted and fewer transactions failed in 2025 than at any time since 2022, underscoring the improved quality of buyers and sellers active in the market.

Transaction activity

Over the past six months, IADA dealers were able to complete aircraft sales transactions in 155 days, an average of 19% faster than the industry average of 192 days. Faster transactions reflect a more efficient, transparent, and professionally managed market, which benefits both buyers and sellers through time and financial savings, reduced uncertainty, and smoother deals.

Market sentiment strengthens in Q4

IADA survey respondents indicated that overall market conditions strengthened in Q4 2025, rising to 3.72 on a 1–5 scale, up from 3.47 in Q3 2025 and 3.32 in Q4 2024. Respondents cited:

• The reinstatement of 100% bonus depreciation
• Lower interest rates and expanded lender capacity
• Strong equity markets and business confidence
• Normalized corporate travel demand

Survey respondents were split approximately 74% Dealers and Brokers and 26% Products and Services members, providing a broad, informed perspective across the transaction lifecycle.

Inventory of younger, in-demand aircraft tightened further during the quarter, particularly in late-model, program-enrolled super-mid and large-cabin jets. The survey also reflected a continued shift in market leverage toward sellers, registering among the lowest buyer-driven readings of the past eight quarters.

Segment-specific trends and six-month outlook

While pricing and demand remained firm for late-model aircraft, respondents expect some softening in turboprop and light jet segments, where buyers are more sensitive to interest rates and upcoming maintenance events.

Approximately 85% of respondents expect pricing to remain stable or decline slightly over the next six months, with dealer willingness to inventory aircraft increasing modestly, another indicator of market confidence. Although the six-month demand outlook eased slightly from Q3, respondents described the shift as a seasonal normalization rather than a structural slowdown, with expectations for renewed strength later in 2026.

Year-end summary: positioned for a healthy 2026

The Fourth Quarter Market Report concludes that 2025 was another strong year for preowned business aircraft transactions, supported by favorable tax policy, resilient demand and disciplined pricing. Strong OEM backlogs, improved financing conditions and sustained interest from both new and repeat buyers are expected to support continued market health in 2026.

BlueSky Business Aviation News | 29th January 2026 | Issue #828