PNC 2025 Outlook: Aviation Finance

This story is part of a series of 2025 outlooks from PNC Corporate and Institutional Banking.

A new year may bring new opportunities for businesses or individuals looking to purchase a private aircraft. But potential buyers in 2025 are likely to encounter many of the same challenges that have characterized the market for the last several months – primarily, a shortage of available inventory.

“Even as interest in owning a private jet has remained consistent over time, so have challenges associated with aircraft inventory available for purchase, whether in terms of new or used airplanes,” said Ramy Sidhom, head of PNC Aviation Finance. “However, that does not mean there aren’t options available for those who are interested in and well-positioned for private jet ownership. It may just require working closely with aviation industry specialists who can help facilitate and guide the purchase process.”

Ongoing Low Inventory for Used Aircraft

For some buyers, a logical first step may be to pursue purchasing a used aircraft. But inventory levels of available used aircraft have remained low for the last several years, and this is unlikely to change in 2025. While used business jet inventory has increased 7% year-over-year as of January 2025, it has decreased 8% from December 2024 and 4% over the previous six months.¹

In Sidhom’s view, this ongoing trend emphasizes the importance of working with advisors that are well-positioned to help with the search. “Given the amount of time it takes to find a plane and how much research is involved, businesses can really stand to benefit by working with an industry specialist, whether that’s an attorney, a certified broker, or an aviation finance specialist, to navigate the process,” Sidhom said. “From a banking relationship standpoint, it’s important to think about working with a bank that is able to finance a wide range of aircraft and can be flexible with a buyer throughout their growth trajectory.”

Extended Delivery Times for New Aircraft

The appetite for new jets remains as robust as ever, but, as with used aircraft, access is an issue. Available inventories of newer jets (those less than seven years out of production) increased 12% year-over-year in January, but this number is 9% less than the previous month and represents 3.6% of the fleet.¹

The average wait time for a buyer to take delivery of a new business jet from the point of purchase can be as long as two years or more. Much of the lag time stems from manufacturers’ efforts to maintain balanced inventory levels and avoid a glut of available aircraft on the market. But even if they were strategically incentivized to do so, many manufacturers would be unable to realize significant increases in production levels, due to skilled labor shortages and supply chain challenges.

This backlog for new aircraft creates a situation in which relying on a bank with industry expertise, as well the capacity to offer a range of financing solutions, can play a critical role. “A buyer who wants a new airplane, of virtually any type of make or model, will have to commit to the purchase knowing that a significant period of time will elapse before they actually take ownership of the aircraft,” said Sidhom. “If they are interested in financing the airplane, it can be important to work with a bank that will provide financing through progress payments during the construction period, but that can also help secure long-term financing once the aircraft is complete.”

Potential Variables Ahead in 2025

While the status of aircraft inventory is likely to remain generally static in 2025, there are some other potential variables on the horizon that could lead to changes in the aviation industry. With a new presidential administration now in place, it remains to be seen if there will be any regulatory or support impacts that could affect the aviation industry.

But the biggest question may be whether the government will reinstate 100% bonus depreciation under changes to the tax code. This change would allow buyers to deduct the entire cost of an aircraft purchase made in 2025, thus reducing their tax liability, and could lead to an uptick in market activity by the end of the year.