According to the latest forecast from Jetcraft, the pre-owned business jet market is poised for continued growth in 2024. The sector witnessed a record-breaking year in 2022, buoyed by the resurgence of corporate clients and strong performance in the EMEA markets.
Jetcraft's annual Pre-Owned Business Jet Market Forecast revealed that the private jet market reached an all-time high in terms of both hours flown and sales, with pre-owned jet transactions reaching $16.3 billion in 2022. The post-pandemic return to regional and international business travel played a significant role in this remarkable achievement.
While there will be a slight correction in 2023, with total sales forecasted to reach $12.4 billion, the long-term outlook for the pre-owned jet market remains positive. In 2022, corporate clients constituted 60% of Jetcraft's transactions, indicating a strong resurgence of interest in private aviation for business purposes.
Jahid Fazal-Karim, owner, and chairman of the board at Jetcraft, emphasized the importance of face-to-face interactions in the business world and how video conferencing technology, while useful during border closures, cannot replace the value of in-person meetings.
Over the past two years, Jetcraft has witnessed rising prices for pre-owned business jets due to increased demand and supply chain challenges at major manufacturers. However, the backlog of orders is gradually reducing to pre-pandemic levels, leading to a return of normal asset depreciation.
Jetcraft's 2023 report delves into the details of pre-owned transaction values, explaining the unexpected surge in average prices during 2022 and how the market is now stabilizing after an unconventional period.
Looking ahead, Fazal-Karim expects sales volume to be driven by existing corporate and individual clients looking to upgrade their aircraft. Additionally, first-time business jet owners, who have previously tested the waters through charter or fractional ownership, are now opting to purchase their aircraft outright.
From 2024 onward, the market is predicted to stabilize at over $15.4 billion annually, with an increase in total transaction volume, the 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 report also highlights the importance of the global market's strength, with EMEA customers flying more frequently on average than their American counterparts. Moreover, there is an expectation of growth in Asian markets, particularly China.
Younger buyers, under 50 years old, have shown a strong affinity for private aviation, flying 19% more hours in 2022 compared to their older counterparts. This trend reaffirms the enduring appeal of business aviation in the modern world.