Private jet market resale gains rise on delivery delays, strong demand

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Private jet resale gains

Highlights

Private jet buyers are reselling new aircraft at premiums of up to 10%, with Gulfstream G700s seeing resale values several million dollars above purchase price due to delivery delays extending to 2029–2030.
Surging demand in the secondary market is driven by production bottlenecks, supply chain shortages, and immediate availability needs as private air travel demand remains strong.
The One Big Beautiful Bill Act's 2025 bonus depreciation has fueled U.S. buyer activity, while manufacturers have curbed pre-delivery flipping, forcing sellers to wait until after delivery for profitable resales.

Supply constraints drive resale premiums

As reported by Financial Times, buyers of sought-after private jets are increasingly able to resell aircraft shortly after delivery for substantial gains as backlogs at manufacturers stretch into the next decade.

Oliver Tebbit, a partner in the aerospace team at HFW, said anyone taking delivery of a new heavy jet is likely to find a ready resale market. He said a customer ordering a jet today might have to wait until 2029 or 2030 for delivery, a delay that is pushing more buyers toward second-hand aircraft.

That imbalance is lifting values for the most desirable models. Tebbit said a new Gulfstream G700, which charter experts said typically costs about $80 million before customisation, could be resold at an uplift of about 10%. Barbara Pansadoro, a partner at Addleshaw Goddard, said that depending on the model and aircraft type, the premium can reach several million dollars above the original purchase price.

Industry participants said the market dynamic reflects strong private air travel demand alongside production bottlenecks tied to shortages of castings, forgings and labour. One executive familiar with the market said demand is strongest in the secondary segment, where buyers are seeking immediate availability rather than waiting years for factory delivery.

Tax incentives and contract limits reshape buyer strategies

Advisers and financing specialists said demand is also being supported by wealth creation in the technology sector and by tax policy in the U.S. market. Industry figures said President Donald Trump's One Big Beautiful Bill Act, signed into law in 2025, has added momentum through a bonus depreciation provision that allows companies to offset the full aircraft cost against tax in the first year of ownership.

Mike Francis, head of aviation finance at Citi, said original buyers had previously flipped purchase agreements before delivery, but manufacturers moved to curb that practice because it affected their control over market pricing. As a result, both corporate and individual buyers now tend to complete delivery and then sell the aircraft on, or soon after, delivery.

One adviser said a public company that ordered a private jet three years ago for $77 million sold it for $84 million when it was delivered six months ago. The same aircraft is now being offered off-market in the mid-$90 millions, the adviser added.

Standard contracts typically include clauses preventing a buyer from selling a plane before delivery, according to one industry executive. Advisers said buyers choosing to capture resale profits on assets that usually depreciate are instead relying on private aviation providers such as NetJets, which offer fractional ownership or a guaranteed number of flying hours.

United Nigeria Airlines’ N20 billion commercial paper fundraising plan focused on expanding its fleet and boosting operational capacity in Nigeria’s domestic air travel market. Our earlier article noted that the proceeds were earmarked to support the carrier’s next growth phase and could intensify competition by adding capacity on local routes.

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