A favorable trend in Cessna‘s used business jet inventory supports the view that demand for low and mid-size business jets is on the upswing, an aviation analyst said Wednesday.
That bolsters the potential for recovery at Cessna Aircraft, wrote the analyst, Cai von Rumohr with Cowen and Co., in a note to investers.
The number of used business jets on the market is a key indicator for the sale of new business jets.
The total number of used Cessna business jets available for sale was about flat in June when compared to May numbers, von Rumohr wrote.
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But the number of used Cessna jets still in production that are up for sale — a far more relevant indicator of new jet demand – dropped from 6 percent of the total fleet in May to 5.3 percent in June, von Rumohr wrote.
That’s the lowest level since February 2008. It’s also well below the peak hit in April 2009 when 11.9 percent of the fleet was up for sale.
The decline was led by falloffs of used CJ4, Sovereigns and the Citation X up for sale, von Rumohr wrote.