AviTrader sponsorship ad

IBA sees positive trends in narrow-body aircraft values, but wide-bodies remain depressed

Aviation data and advisory consultancy IBA, has outlined a divergence in value trends between narrow-body and wide-body aircraft driven by a surge in domestic travel in certain markets, but continuing low levels of international travel globally.

In a recent aircraft values webinar, IBA illustrated how a surge in domestic passenger flights, driven largely by rapidly returning demand in North America, is driving a recovery in market values of newer-generation narrow-body aircraft.

The gap between the base and market values of the Boeing 737 MAX, now re-certified for operation in most global markets, with China being the notable exception, has narrowed significantly since the start of 2021. Values of the Airbus A320neo have stabilized and remain ahead of Boeing 737 MAX aircraft of an equivalent age, according to data from IBA’s InsightIQ intelligence platform. IBA forecasts that market values of both the Airbus A320neo and Boeing 737 MAX will each trend back towards base over the next two years, and will align with base values by 2024.

Values of the older A320ceo and Boeing 737-800 narrow-body models are performing less strongly. Market values of both types built between 2008 and 2018 are continuing their divergence from base values, although the Boeing 737-800 continues to perform more strongly with a price range for a ten year old model of US$19.35m compared to US$16.43m for the A320ceo. This is driven by the former’s stronger demand for freighter conversions and less fleet dispersion due to ongoing replacements by the Boeing 737 MAX. Once the MAX is certified in all global markets, IBA forecasts the value gap between the A320ceo and 737-800 to narrow. IBA believes that this softening of market values is not yet severe enough to signal a reduction in base value for those types.

The continuing low level in international travel due to the COVID-19 pandemic is impacting wide-body aircraft values. The Boeing 777-300ER and Airbus A330, the current generation wide-bodies that are the twin-engined mainstays of many airline fleets, are both seeing a continuing drop in values and an accelerating divergence between market and base values. The market values of a 10 year old Boeing 777-300ER fell 25% from US$46.3m to US$34.85m in the first six months of 2021. An Airbus A330-300ceo of the same age fell over 30% from US$27.39m to US$18.41m over the same period.

Phil Seymour, IBA’s President, says: “The divergence in traveller demand across the globe is driving a divergence in aircraft values, and this is a trend we believe will endure as the continuing growth in domestic flights boosts next generation narrowbody values. When international travel demand returns, we believe a similar trend will develop, with the newest wide-body aircraft types seeing the quickest recovery in values.”

Aircraft utilization has grown in all global regions between June and July 2021, with Europe & CIS continuing the steepest recovery with flight levels at 63% of the same month in 2019. This compares to 58% for the Middle East, 63% for Asia Pacific and Africa, 72% for Latin America and 78% for North America.

AviaAM Leasing delivers fourth 737-800 BCF to lessee

AviaAM Leasing, a global aviation holding company engaged in tailored aircraft leasing and trading services, has announced another delivery of a 737-800 Boeing Converted Freighter (BCF). This is the fourth aircraft in the passenger-to-freighter (P2F) conversion programme. The newly converted aircraft has joined the fleet of Bluebird Nordic, an Icelandic ACMI leasing and cargo airline.

Read More »

New start-up Ascendance Flight Technologies raises €21million

Ascendance Flight Technologies, a start-up dedicated to sustainable aviation, has raised €21 million. These new funds give Ascendance Flight Technologies the resources to fly its full-scale prototype, begin certification and scale-up actions for its first aircraft and help its first clients and partners to reduce the carbon emissions of their aircraft thanks to the company’s

Read More »

Sabre teams-up with Plan3 to provide airlines with holistic disruption management

Software and technology provider Sabre Corporation has announced a new agreement with automated airline disruption management solution Plan3 to enable airlines to be more proactive when disruption strikes.    The new alliance will allow Plan3 to draw upon Sabre’s extensive industry reach and deep domain knowledge in airline technology to help accelerate the adoption of its service, while enabling

Read More »

Hawaiian Airlines reaches agreement with Gevo to purchases SAF

Hawaiian Airlines has reached an agreement with biofuel company Gevo, to purchase 50 million gallons of sustainable aviation fuel (SAF) over five years. Gevo expects to supply the SAF from a facility to be constructed in the Midwestern United States and begin deliveries to Hawaiian’s gateway cities in California starting in 2029. “This offtake agreement

Read More »

Wizz Air Malta adds 50th aircraft to its fleet

Wizz Air has announced the addition of a 50th aircraft to the fleet of its Maltese subsidiary. Established only six months ago, Wizz Air Malta operates 265 routes from Italy, Albania, Austria, and Romania, with a fleet of 50 Airbus A320-family aircraft. The new Airbus A321neo joining Wizz Air Malta’s fleet is the most efficient

Read More »

Honeywell and Lufthansa Technik enhance collaboration on digital platform AVIATAR

Honeywell and Lufthansa Technik (LHT) are enhancing their collaboration on Lufthansa Technik’s digital platform AVIATAR to improve the customer experience in aviation analytics. Honeywell Connected Maintenance analytics are now being fully integrated into AVIATAR’s Predictive Health Analytics (PHA) suite, which will grow to more than 100 Predictors for multiple Airbus and Boeing aircraft types. Airline

Read More »

Delta Cargo reveals newest cooler at JFK International Airport

Delta Cargo has revealed its newest cooler at John F. Kennedy International Airport. From pharmaceuticals to flowers, perishable goods flying in and out of New York’s John F. Kennedy International Airport will now receive further improved higher-touch handling.   The new, state-of-the-art facility is the largest of its kind at JFK and offers an upgraded experience

Read More »

Etihad Airways returns to Kolkata, India

Etihad Airways, the national carrier of the UAE, touched down in Kolkata, India, on March 26, as the airline made its much-anticipated return to the city. With a total of seven-weekly nonstop services, the airline will once again connect India’s financial capital, Kolkata, with the world through Abu Dhabi. The first flight on the new

Read More »

Jet Aviation obtains FOCA approval for line maintenance in Zurich

Jet Aviation announced today that it has successfully obtained approval from the Swiss Federal Office of Civil Aviation (FOCA) for its line maintenance repair station in Zurich. The facility is authorised to perform line maintenance on a range of business aircraft. Jet Aviation launched line maintenance in Zurich in May 2022, under a temporary extension

Read More »

Brussels Airlines to welcome Dorothea von Boxberg as new CEO

Currently Chairperson of the Executive Board of Lufthansa Cargo AG, Dorothea von Boxberg will shortly become the new CEO of Brussels Airlines. The appointment is subject to a pending resolution by the Board of Directors of SN Airholding. She is due to take up her new position on April 15 this year and will also

Read More »

Airbus delivers first A321neo from FAL Tianjin

Airbus has delivered the first A321neo aircraft assembled at its final assembly line Asia (FAL Tianjin) to China’s Juneyao Air in Tianjin, China. The aircraft is powered by Pratt & Whitney GTF  engines and features 207 comfortable seats, eight in Business and 199 in Economy Class. Its delivery flight is to use a ten percent

Read More »
aviation news

2023 MEDIA KIT

AviTrader Aviation Media Pack

Learn more on how AviTrader can expand your market

Please contact

Tamar Jorssen
Vice President Sales & Marketing
+1.778.213.8543
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1
Canada

Subscribe to the most widely accepted news source in the aviation industry!


Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.

Scroll to Top