A new market forecast from Jetcraft predicts private jet sales will enjoy growth despite the continued challenges facing the industry. The report, which forecasts pre-owned jet sales figures up to 2024, adds to a growing weight of evidence that the private jet industry will recover from the pandemic far quicker than its commercial counterpart.
The beginning of the pandemic saw a dramatic decrease in the number of flight movements across the world. In April, both commercial and business flights were operating at around 30% of the level they were at the same time in 2019. But while commercial is still languishing at 50%, private aviation experienced a V-shaped recovery and in August was just 18% down on 2019.
The turnaround proves private aviation is far more adaptable in the face of a fast-changing situation such as a pandemic. Not only is it more adaptable, but with fewer people on board, it is also a far safer way to travel mid-pandemic. The increased safety has translated into unprecedented interest from first-time flyers, which will lead to increased sales over the next five years.
Jetcraft predicts 10,183 pre-owned transactions totaling $48.8bn between now and the end of 2024. Interestingly, the forecast also predicts a rise in large and long range jet sales with more young billionaires wanting to fly transcontinental without stopping. Large jet transactions will account for over half of all secondary private jet sales in 2024.
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The private jet sales industry will also find its pool of potential customers growing between now and 2024. The forecast highlights related data that shows the number of ultra-high-net-worth individuals (UHNWIs) is set to grow by almost 5% per annum until 2024, increasing from 513,244 to 649,331.
Many of these freshly coined billionaires will find the private aviation industry far easier to access with charter options, fractional ownership and jet cards all becoming more prevalent.
For the few UHNWIs who want to own a jet outright, it will be primarily the large jets they opt for. This group of ultra-wealthy clients will compensate for a shrinking corporate pool as many companies look to avoid large jets because of growing environmental targets and scrutiny.
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Much of the growth in UHNWIs will be young billionaires (under 50 years old) as new wealth is largely coming from the tech revolution. With over 80% of young billionaires opting for large jets between 2015-2019, the growth in young billionaires is likely to further benefit the sector.
Speaking about the forecast, Jetcraft chairman Jahid Fazal-Karim said: “Our previous forecasts predicted a downturn. Although it has taken place sooner than we thought, we were prepared and, as a result, are in a stronger position than in 2008. Aviation is one of the most dynamic and resilient industries in the world and I’m confident in its post-Covid-19 recovery, particularly with more first-time buyers realizing the value of business aviation.”