Aircraft appraiser IBA has adjusted downward its base value assessments for older widebody aircraft in line with fleet reductions caused by the Covid-19 pandemic. While pressure on the long-haul market has softened widebody aircraft values overall, older aircraft have borne the brunt of the Covid-19 pandemic’s impact on values, noted IBA.
Although increased flight activity has seen 82 percent of the global Boeing 777-300 fleet return to service and stronger demand for passenger-to-freighter conversions have raised “slight cause” for optimism, the appraiser expects a significant number of airframes to exit the fleets of key operators such as Cathay Pacific, Emirates, and Qatar Airways “in the near future.” The size of the aircraft makes it difficult for operators to fly profitably in the secondary market, and the introduction of the 777X could result in the continuation of the current oversupply situation, it added. IBA believes that 777-300 market values will soften further in the long term and, with levels dipping below soft values, it has adjusted base values by 25 percent to 30 percent.
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