Fuel costs have a direct impact on aircraft values and, as a result, the prices of older metal are tipped to take a hit beginning in the third quarter of this year.
Furthermore, with no let up in sight to skyrocketing fuel prices, certain aircraft values could see a “crash equal to or worse than” what the industry experienced in the 1990s, says Steve Manley, CEO of aircraft trader Universal Asset Management.
Recent fleet retirements announced at US airlines are also putting stress on older aircraft values, according to Commercial Aviation Online, flightglobal.com's sister premium news site.
During a first quarter earnings call, John McMahon, CEO of Genesis Lease, echoed this sentiment. McMahon opined that the outlook for aircraft values is “far more problematic for older aircraft types, particularly with oil north of $100 a barrel” than for newer ones.
Source: Commercial Aviation Online