Global Jet Capital (GJC), a global provider of financial solutions for business aircraft, says that the global business jet market showed signs of improvement in the third quarter of 2019.
In its latest quarterly market report, the company said that transactions increased by 3.3% during the third quarter, giving a market value increase of 19.9%.
The report said that the gains follow a first half-year that saw transactions decline by 11.6%.
Compared to the third quarter of 2018, GJC say that the total value of transactions for business jets grew by 20% in the third quarter of 2019, thanks largely to an increased amount of new aircraft deliveries.
According to the company, the total value of transactions in Q3 2018 stood at $6 billion, with a 51.2% split in favour of new aircraft deliveries, versus 48.8% preowned transactions.
By the third quarter of 2019 the total value of transactions had increased to $7.2 billion, with a swing to 65% being from new aircraft deliveries.
“As business jet customers took delivery of new jets, pre-owned transactions fell and inventories climbed, resulting in a 13.1 per cent increase in Q3 compared to a year earlier,” says the report.
The report also says that business jet flight activity increased when compared to the same period in the previous year.
The third quarter of 2018 saw 1.2 million flights, with 85.4% taking place in the US. A year later, in Q3 2019, total flights had increased to 1.3 million, with a slight increase to 85.5% in the US.
“Global trade has fluctuated in 2019 but remains threatened by trade disputes. The Cboe Volatility Index (VIX) remained higher than 2017 levels, but lower than Q4 2018 – reflecting modest concern among investors regarding future economic stability,” says the report.