In the wake of unprecedented challenges brought on by the pandemic, the pre-owned private jet market demonstrated remarkable resilience and witnessed a record-breaking surge in 2022, as revealed by Jetcraft’s annual Pre-Owned Business Jet Market Forecast. This market report not only highlighted the industry’s impressive rebound but also shed light on the factors driving this growth and offered valuable insights into the future.
Record Growth in 2022: A Post-Pandemic Rebound
The year 2022 marked a historic high for the pre-owned private jet market, with both flight hours and sales soaring to unprecedented levels. Transactions for pre-owned jets reached a staggering $16.3 billion, a clear testament to the swift resurgence of corporate clients seeking regional and international business travel opportunities after a prolonged period of restrictions and uncertainty.
2023 Correction and Beyond
While the report forecasts a correction in 2023, with total sales projected at $12.4 billion, the outlook for the pre-owned jet market remains optimistic over the next five years. The corporate sector played a pivotal role in driving this market surge, accounting for an impressive 60% of Jetcraft’s transactions. The return of the corporate buyer underscores the significance of face-to-face interactions in the business world, reaffirming the value of in-person meetings even in an increasingly digital age.
Factors Influencing the Market
Over the past two years, Jetcraft observed a rise in the prices of pre-owned business jets, primarily due to surging demand and supply chain challenges faced by major manufacturers. However, as the backlog in orders gradually aligns with pre-pandemic levels, the market is experiencing a return to normal asset depreciation, signaling a steadying of prices.
A Stabilizing Market and Nuanced Insights
Following an unsustainable growth spurt post-lockdown, the private jet market has begun stabilizing at annual values above $15.4 billion. Jetcraft’s 2023 report delves into the nuances affecting pre-owned transaction values, elucidating why average prices exceeded expectations in 2022 and how the market is now undergoing a corrective phase after an extraordinary few years.
Trends Shaping the Future
The next five years are expected to witness an increase in sales volume, primarily driven by existing corporate and individual clients seeking aircraft upgrades. Furthermore, first-time business jet owners, having gained prior experience through charter or fractional ownership, are now increasingly opting to purchase their own aircraft outright.
A Bright Future with Global Strength
Looking ahead to 2024-2027, the market’s stability will be bolstered by the global economy’s strength, with EMEA customers now surpassing their American counterparts in terms of average flight frequency. Additionally, there are promising growth expectations in Asian markets, particularly in China.
The Age Divide and Growing Interest
The report also revealed an interesting trend, with younger buyers (under 50) flying significantly more hours than their older counterparts, indicating a burgeoning interest in business aviation that shows no signs of abating.
The pre-owned private jet market’s exceptional performance in 2022 showcased the resilience and unwavering allure of luxury air travel. With a favorable outlook for the coming years and an increasing interest among a diverse clientele, the private jet industry continues to soar to new heights, cementing its status as an essential facet of modern business and leisure travel.