FXSolutions Quarterly Update – H1 Recap/H2 Outlook
Exciting developments are afoot in business aviation. In the past month alone, high-level developments have emerged, presenting a clearer course for the remainder of 2025 and the beginning of 2026. At the same time, some of the changes we’ve anticipated have occurred, and persistent operational challenges have remained:
- The acceleration of manufacturer deliveries is dislodging a bottleneck in the market
- The return of bonus depreciation is motivating prospective buyers to take action
- Parts shortages are becoming a new normal
- Right-sizing of private aircraft and solutions
MARKET ACCELERATION
Manufacturer deliveries are ramping up, and the downstream effects are significant. GAMA’s Q1 report indicates Q1 2025 was one of the best in recent history, with total aircraft deliveries up 18.1% over Q1 2024. Among Q1 2025 deliveries, business jets came in at 141 units, up 11% from Q1 2024.
This has created movement. The new aircraft deliveries have resulted in the emergence of late-model, high-pedigree, pre-owned inventory that many operators have been utilizing as a stop-gap measure. Notably, these desirable aircraft have been appearing more regularly, in step with new aircraft deliveries, keeping both buyers and sellers actively engaged.
According to GAMA’s report, geopolitical tension hasn’t curtailed optimism in the industry. Q1 2025 was one of the best quarters on record since 2019, pre-COVID, in terms of new orders. Gulfstream took the lead with 36 deliveries, amounting to a 50% increase over the same period last year. Embraer has seen a similar increase, delivering some 38 business jets in Q2 2025, an increase of over 40% over the same period last year.
BONUS DEPRECIATION
Everyone expected 100% bonus depreciation to occur this year, and as part of the recent legislation passed by Congress, it has indeed come to fruition. Full bonus depreciation has been restored retroactive to January 20, 2025, coaxing “wait and see” buyers off of the sidelines and into purchase negotiations.
For buyers not wishing to utilize the 100% bonus, the legislation also increases Section 179 expensing to $2.5M on aircraft up to $6.5M, providing additional options and financial flexibility.
Overall, I expect to see a robust second half of the year for both whole aircraft and fractional transactions as buyers take action.
IMPACT OF PRIVATE JET TRAVEL RIGHT-SIZING
In 2024, there was a notable increase in aircraft owners—many of whom had acquired their aircraft shortly after the pandemic—seeking to transition to alternative access models such as fractional ownership, jet cards, and charter services. This trend has persisted into 2025; however, we are also observing a “right-sizing” effect, as these owners refine their aviation strategies to better align with their specific mission requirements. In many instances, this has resulted in a hybrid approach that combines whole aircraft ownership with structured solutions, including fractional shares, jet cards, and charter services.
SUPPLY CHAIN
In my last update, I explained how parts shortages for the MRO industry had been delaying pre-purchase inspections. Out-of-stock and difficult-to-source parts were stretching timeframes by weeks or even months.
Parts are still in short supply, but the industry has, for the most part, been adapting. All parties involved in transactions are now adjusting their timelines for inspections, adjusting their planning, and adapting to the persistent reality.
While some lingering concerns remain regarding tariffs, I don’t think they present a threat to the health of the new or pre-owned markets. The amount, duration, and applicability of tariffs have been fluid and subject to constant change. This positions them more as a nuisance to be aware of than a roadblock altogether. Combined with the current administration’s pro-aviation stance, this indicates to me that tariffs won’t have a significant impact on our industry.
SECOND HALF LOOKING STRONG
I remain optimistic and increasingly confident about the remainder of 2025 and 2026. Backlog from the manufacturers remains one of the key metrics to indicate the health of the market, and the current backlog of roughly 2-3 years indicates a very healthy market overall.
Similarly, activity at FXSolutions has been quite robust. In 2024, we surpassed $1B in transactions since the company’s launch in 2022. This year, we have completed 16 aircraft transactions, including the first-ever pre-owned G700 transaction in history for a retail client.
We expect to surpass $1.5B in the next quarter, and we pride ourselves on doing so one client at a time, helping to provide each with a seamless transition into their next chapter of aircraft ownership or optimal private flying solution.
