Business jet market continues to normalise: Global Jet Capital
Business jet market showed signs of stabilisation in the second quarter of 2024 as number of flights declined to 916,561 from 937,660 in the same period last year, according to an analysis published by Global Jet Capital.
“In Q2 2024, flight operations declined 2.3% from a year earlier, with declines evenly spread around the world. In the US and Europe, continued normalisation of usage drove declines while geopolitical threats drove declines in Europe, the Middle East, and Africa. Fractional operators remained the strongest segment in the market and continued to demonstrate modest growth and sustained demand,” said the report.
While overall departures were lower than their 2022 peak, they still surpassed pre-pandemic levels. Despite declines on a YoY basis, flights increased 6.4% on a sequential basis from Q1 2024 and demand remained above pre-COVID-19 levels.
Global Jet Capital said that this trend reflects the industry’s unique value proposition, including factors like personal safety, flexibility, productivity, and comfort, which have attracted a growing number of new users.
On the transaction front, after relatively depressed 2023 and early 2024, second quarter saw growth of new and pre-owned jet sales from last year. Total transactions clocked in at 1,297 (993 pre-owned and 304 new) with a total value of $14.8bn.
In terms of value, average transaction values of new jets grew by 16% to $25.3m from last year owing to supply woes faced by OEMs while those of pre-owned grew 8%YoY to $7.1m.
“Over the past few years, new deliveries were held back by supply chain and labor constraints following disruptions caused by the COVID-19 pandemic. New deliveries were also held back by delays in new aircraft certification,” said Global Jet Capital on the transactions during the second quarter.
Continuing a trend that started in the latter half of 2022, aircraft listings also saw growth in Q2 2024. “In 2024, the increase in aircraft listings has been driven by listings of older aircraft. Through the end of Q2, listings of 13-year-old and older aircraft rose 11.9%, compared to 5.1% for 12-year-old and younger aircraft. With the increase, aircraft 13 years old and older represented 71% of all listings,” said Global Jet Capital.
