The private jet market has been soaring to new heights in recent years, and according to the latest forecast from Jetcraft, the trend is set to continue with robust growth projected for 2024. The 2022 Pre-Owned Business Jet Market Forecast by Jetcraft revealed that the pre-owned private jet market had a phenomenal year, experiencing record-breaking growth due to the resurgence of corporate clients and sustained expansion in the EMEA (Europe, Middle East, and Africa) markets.
In 2022, the market witnessed a surge in activity, with both the number of hours flown and sales reaching all-time highs. Pre-owned jet transactions amounted to an impressive $16.3 billion, largely fueled by the return of regional and international business travel following the challenging times of the pandemic.
However, Jetcraft forecasts that there will be a correction in 2023, with total sales expected to reach $12.4 billion. Despite this dip, the overall outlook for the pre-owned jet market remains positive. The corporate sector, accounting for 60% of Jetcraft’s transactions, played a significant role in driving the market’s growth in 2022.
Jahid Fazal-Karim, owner and chairman of the board at Jetcraft, emphasized the enduring significance of face-to-face interactions in the business world. While video conferencing technology served as a viable alternative during travel restrictions, businesses have come to recognize the irreplaceable value of in-person meetings in fostering strong relationships and driving successful ventures.
Over the past two years, Jetcraft has observed an increase in the price of pre-owned business jets due to heightened demand and supply chain challenges faced by major manufacturers. However, the backlog in orders is gradually decreasing, bringing asset depreciation back to normal levels.
The market has undergone a stabilization phase after experiencing an unsustainable surge in growth post-lockdown, and the average values of pre-owned business jets have now stabilized at levels above $15.4 billion annually. Jetcraft’s 2023 report delves into the nuances of pre-owned transaction values, shedding light on the unexpected increase in average prices during 2022 and how the market is self-correcting after a period of unconventional growth.
Looking ahead to 2024 and beyond, Jetcraft anticipates that the stability of the market will be underpinned by existing corporate and individual clients seeking to upgrade their aircraft. Additionally, first-time business jet owners, who initially explored charter or fractional ownership options, are now purchasing their own aircraft outright.
The projected growth in the private jet market from 2024 to 2027 is also expected to be bolstered by the strength of the global market, with EMEA customers flying more frequently on average compared to their American counterparts. Furthermore, there are high hopes for growth in Asian markets, particularly in China.
One interesting trend noted in the report is that younger buyers, under the age of 50, are flying more hours than their older counterparts, indicating a sustained interest and demand for business aviation among the younger generation.
Overall, Jetcraft’s annual forecast brings encouraging news for the private jet industry, suggesting that the market will continue its upward trajectory in 2024 and beyond. As corporate clients return to private aviation and new buyers enter the market, the demand for pre-owned business jets is expected to remain robust, further solidifying the industry’s position in the global aviation landscape.
