The pre-owned private jet market experienced a record year in 2022 with growth driven by the return of corporate clients and continued growth in EMEA markets, a new report from Jetcraft has found.
Jetcraft’s annual Pre-Owned Business Jet Market Forecast has reaffirmed that the private jet market hit an all-time high for both hours flown and sales. Transactions for pre-owned jets hit $16.3bn in 2022, largely driven by the post-pandemic return to regional and international business travel.
There will be a correction in 2023 – Jetcraft forecasts total sales of $12.4bn but the five-year outlook for the pre-owned jet market is positive. The corporate sector returned to private aviation with aplomb in 2022, counting for 60% of Jetcraft’s transactions.
“The return of the corporate buyer proves what we’ve always known: the continued importance of face-to-face interactions in the relationship world of business,” says Jahid Fazal-Karim, owner and chairman of the board at Jetcraft. “Video conferencing technology served a purpose for all of us when the borders were closed, but businesses recognize the value of in-person meetings.”
Jetcraft has seen the price of pre-owned business jets rise over the last two years due to increased demand and supply chain issues at major manufacturers. The backlog in orders is now falling gradually in line with pre-pandemic averages and as a result normal asset depreciation is returning.
The private jet market is steading itself after an unsustainable surge in growth post-lockdown, with values stabilizing at above $15.4bn annually. Jetcraft’s 2023 report breaks down the nuances found in pre-owned transaction values, explaining why average prices increased more than expected during 2022, and how the market is now correcting itself after an unconventional last few years.
“Existing corporate and individual clients looking to upgrade their aircraft will drive sales volume over the next five years,” says Fazal-Karim. “First-time business jet owners continue to play a role in market growth, with many, having tested the waters through charter or fractional ownership, purchasing their own aircraft outright.
“From 2024, values will stabilize at above $15.4B annually, due to an increase in the total transaction volume, retirement of a significant portion of Light Jets from the under 25-year-old pre-owned fleet, and a higher share of larger jets entering the market.”
The market’s stability from 2024-2027 will be aided by the strength of the global market, with EMEA customers now flying more frequently on average than their American counterparts. There is also an expectation of growth in Asian markets, most notably China.
Younger buyers (under 50) have continued to fly more hours than their older counterparts, flying 19% more in 2022 in a further indication that business aviation isn’t going anywhere.
Click here to download the full report
