AEA: Avionics Sales Drop Nearly 9% in First Quarter

 - May 27, 2020, 11:39 AM

Worldwide business and general aviation avionics sales in the first quarter amounted to about $660.4 million, an 8.8 percent year-over-year decrease, according to figures released yesterday by the Aircraft Electronics Association. This ends a streak of 12 consecutive quarters with a reported increase in year-over-year sales, it added.

Of the first-quarter 2020 sales, 52.3 percent came from the retrofit market, while forward-fit sales accounted for the remaining 47.7 percent. According to the companies that separated their total sales figures by world region, 75.2 percent of the quarterly sales volume occurred in North America (U.S. and Canada) and 24.8 percent took place in the rest of the world.

Dollar amounts reported by participating companies use net sales price and includes all business and general aviation aircraft electronic sales, including all component and accessories in cockpit/cabin/software upgrades/portables/certified and noncertified aircraft electronics; all hardware; batteries; and chargeable product upgrades from the participating manufacturers. Amounts do not include repairs and overhauls, extended warranty, or subscription services.

“With the passing of the Jan. 1, 2020, deadline to equip aircraft with ADS-B Out avionics in the United States, the end to 12 consecutive quarters of sales growth may not come as a surprise,” said AEA president and CEO Mike Adamson. “We also don't yet know the full extent and global impact of the economic damage caused by the Covid-19 pandemic near the end of the first quarter and how it will weigh on the industry and our market figures going forward. The continued operations of business and general aviation could provide a silver lining while commercial aviation remains at a near standstill worldwide.”