New Orders Mask Problems for Used Values

As of last year, in the third quarter of 2010, market conditions for 2011 appeared to be particularly promising. Economic growth was largely positive and fuel prices reasonable, at least when compared to the peak of mid 2008. While the ash cloud over Europe had constrained traffic growth earlier in 2010, the airlines were able to report much improved profitability. Despite high levels of production of new aircraft, there was an expectation that 2011 would see an overall shortage of newer capacity. This shortfall of new aircraft would then lead to renewed focus on used aircraft. Values of used aircraft were then expected to see an improvement, starting in earnest in late 2011 before reaching a peak in 2012.