Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

“We expect little change to the prevailing business jet narrative, which is that demand has stabilized but with only muted signs of recovery,” J.P. Morgan said in its latest monthly business jet report, released yesterday. “Business jet demand has not recovered with corporate profits, as it has previously. We estimate that 2013 U.S. corporate profits were up about 50 percent from the 2008 trough, whereas bizjet deliveries have yet to turn up decisively,”

 


despite increasingly positive market indicators. Pre-owned jet inventory fell 0.2 percentage points last month, to 8 percent for in-production models, marking the bottom of the range for this year, J.P. Morgan analyst Joseph Nadol III noted. Midsize jets drove the decline, while light and large-cabin inventory was flat overall, with a mixture of increases and decreases in these categories.

 


Compared with August, the average asking price for pre-owned business jets ticked up slightly last month, to $10.84 million, marking the second consecutive monthly gain. Light jet prices rose 1.2 percent, while those for large cabins were flat. Midsize jet prices fell 2.2 percent, “sending a mixed signal in combination with the inventory decline,” the investment firm said. “A bottoming in pricing would be a meaningfully positive development, although we are not ready to make that call just yet.”

 


Meanwhile, growing U.S. flight operations are “directly driving” aftermarket sales and support new demand, J.P. Morgan said.

JPM: Bizjet Demand Stabilizes, but Recovery Still Muted

Indicators are mostly positive, but business jet demand still lagging rise in corporate profits.

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