As 2011 began, we forecast that demand would remain strong through the early part of the year, and three months in this prediction has held true. Demand remains steadily at 20 to 25 points above last year despite the 32 month high in oil during this period.
We expect this trend to continue over the summer months as the market transitions into a traditionally higher demand period. This would be a reflection of the assumption that the lift in the index has been generated by a combination of an increase in actual market demand and a shift in popularity to the heavy jet category.
“While the recent increase in demand for the heavy jet segment may, in part, reflect the number of emergency response situations around the world,” says Oliver King Managing Director of the Avinode Marketplace, “it also reflects a belief that margins remain stronger at this end of the market.”