Business aviation flying high as corporate buyer roars back to life, Jetcraft forecast finds
The return of the corporate buyer has played a key role in driving unprecedented business aviation demand, according to new research from Jetcraft, the global leader in business aircraft sales and acquisitions.
Ever Forward, Jetcraft’s 2023 Pre-Owned Business Jet Market Forecast reveals that continued growth is predicted for the years ahead, despite an inevitable market correction in 2023, setting new annual benchmarks for volume and value. In 2022, transaction values hit a record $16.3B,driven in part by the resurgence of corporate aviation, following a dip during the pandemic.
Jetcraft’s data shows the share of Jetcraft buyers coming from the corporate sector reached 60% in 2022, demonstrating the value corporations place on jet ownership.
“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, Jetcraft. “Video conferencing technology served a purpose for all of us when the borders were closed, but businesses recognise the value of in-person meetings.”
New entrants to the market, OEM backlogs and the corporate buyer’s return resulted in total annual pre-owned transaction values beyond industry expectations – increasing by 38% in 2022.
“Existing corporate and individual clients looking to upgrade their aircraft will drive sales volume over the next five years,” continues 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 stabilise 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.”
Jetcraft’s 2023 report also breaks down the nuances found in pre-owned transaction values, explaining why average prices increased more than expected during 2022.
Chad Anderson, CEO, Jetcraft adds “Today’s pre-owned jet marketplace is extremely complex, with aircraft segment prices differing widely and overlapping significantly. This price and segment variation stems from greater demand of popular makes and models, as well as turnkey aircraft, which have always attracted a premium but are especially lucrative at present due to the length of the OEM and maintenance facility backlogs. We expect prices to level out as supply increases and depreciation normalizes in 2024.”