LunaJets warns of ‘hard landing’ in European business aviation charter market
LunaJets has reported a 3% decline in its revenue and bookings so far this year, as the Geneva-based charter operator warns of a “hard landing” for European business aviation from the highs of recent years.
Company CEO Eymeric Segard said that after two years of “post-pandemic unsustainable growth”, the European business aviation market is experiencing a major decline in activity.
“Our industry is highly cyclical and exposed to macro swings, we are not surprised by this slowdown in Europe. We had largely anticipated this situation, but nonetheless remain very concerned by this new market,” said Segard.
According to Guillaume Launay, head of Sales, LunaJets, the private jet charter operator reported a 40% revenue growth of $150m and a record 1,250 new clients last year, despite a slowdown since August.
“However, from January our revenue and bookings have decreased by 3% which is disappointing but well above market average,” said Launay, adding that the firm’s summer pre-booking level has been later than usual too.
This has meant that pricing and availability are better than last year, however. “We now predict a return to normal after the chaotic Summer 2022 due to airport and supply issues have abated significantly,” said Launay.
For Segard, the slow start for LunaJets comes as a warning of things to come for the whole of business aviation.
“Low-interest rates, merger and acquisitions and corporate activities at all-time highs are clearly behind us, as we foresee a hard landing for our industry with potential supply dislocation risks if conditions remain,” said Segard.
There are similar predictions coming from elsewhere in the industry. Last week, Global Jet Capital, the business jet financier forecast a fall in pre-owned aircraft transactions in 2023.