Private Aircraft Depreciation: How Jets Lose Value & How Owners Can Preserve It

Like most assets, private aircraft depreciate with time. While that depreciation can represent a loss, it can also help to create tax advantages for owners who use their jets for business purposes. 

In this guide, we’ll explain what depreciation is, how it works, and what you’ll do to make the most of this opportunity for your business and bottom line.

What Is Aircraft Depreciation?

Aircraft depreciation is the reduction in the value of an airplane over time. From the moment a jet leaves the factory, its value begins to decline due to wear, obsolescence, and market fluctuations. 

For business owners, depreciation offers an opportunity. They can write off a portion of the plane’s purchase price against their taxable income each year. That depreciation turns the significant initial cost of an aircraft into a series of annual deductions.

How Aircraft Depreciation Works in Private Aviation

Aircraft depreciation is front-loaded. The most dramatic losses occur almost immediately, followed by a long tail of loss as the aircraft matures. 

New models can complicate depreciation metrics. When a manufacturer announces something new, the older model becomes less valuable in the eyes of potential buyers. 

That’s especially true if the new version offers a technological advance, such as an increase in range or fuel efficiency.

Tax Advantages of Aircraft Depreciation

The Internal Revenue Service treats aircraft as essential assets that come with write-offs for depreciation. That means owners don’t need to wait years to write off the entire value of a plane. 

Instead, they can front-load deductions, significantly lowering their taxable income during the years when the aircraft is most expensive to finance and operate. 

Legislation passed in 2025, commonly referred to as the One Big Beautiful Bill, significantly changed the landscape for jet owners. 

Provisions allow owners to deduct 100% of the jet’s purchase price in the first year it’s placed in service. The advantage applies to both new and pre-owned aircraft. 

For example, a consultant buys a Diamond DA62 for $1,500,000. They utilize Section 179 (which has a $2.56M limit for 2026) to expense the entire amount. 

They utilize Section 179 (which has a $2.56M limit for 2026) to expense the entire amount.

Bonus Depreciation

Bonus depreciation is a specialized tax incentive that was significantly reshaped by 2025 legislation. Now, business owners can deduct the entire cost of a qualifying asset in the first year it’s placed in service. 

To qualify, the aircraft must be used for business more than 50% of the time. It can be either new or used, as long as it’s new to the taxpayer.

Factors That Heavily Influence Private Aircraft Depreciation 

All aircraft depreciate. That’s the nature of expensive assets. However, there are factors that have a major influence on value loss.

Those factors include the following:

• Age: Newer models depreciate faster than older models do (within the first few years of their purchase). 
• Use: The more flight hours an aircraft accrues, the deeper the impact on value. 
• Damage: Planes that have documented damage tend to have significantly lower values. 
• Models: A new model entering the market can reduce the value of older versions.

Ways to Preserve the Value of Your Aircraft

Some factors (like the release of new models) are outside of your control. However, as a dedicated owner, you can take steps to ensure your aircraft keeps its value for as long as possible. 

Start with maintenance. Ensure your management company keeps meticulous records of everything done to your aircraft, and maintained in accordance with the OEMs maintenance schedule.

Make upgrades when possible, especially to avionics software. Even small shifts can deliver big value over time. 

And finally, limit excessive flight hours. Avoiding unnecessary flight hours/cycles and maintaining consistent maintenance schedules can help preserve resale value.

Tips for Private Aircraft Owners to Build Additional Value 

While depreciation may be inevitable, there are proactive steps to take to keep your aircraft enticing to buyers in the marketplace. 

Upgrades

Most manufacturers offer upgrade options, including tools you can add to some of the oldest models on the market. 

Good ideas to consider include the following:

• Upgrading cabin connectivity 
• Enhancing cockpit displays and navigation systems
• Refurbishing the interior of the aircraft
• Painting the exterior of the aircraft

Charter & Leaseback Programs 

These systems allow you to make money from your aircraft when you’re not using it. A management company you hire can find consumers ready to make a trip and handle all the logistics. You are paid a portion of each trip, which is money that helps offset ownership costs.

Strategic Aircraft Selection

One of the most important decisions you can make involves which aircraft to purchase. Some models hold their value better than others. Working with a knowledgeable broker can help you avoid choosing a plane that will lose value too quickly. 

We Can Help You Evaluate Aircraft Values

At Element Aviation, we have decades of experience in finding the right aircraft for investors. We can help you evaluate your choices, understand the risks, and home in on the benefits. Contact us to get started.