How Have Business Jet Sales Increased Since The Start Of The Coronavirus Pandemic?

The utilization of business jets has significantly increased in the last few years. There was a time when these jets were exclusively used by business tycoons and celebrities. However, that trend has seen a significant shift after the global pandemic. Increasing numbers of small business owners and their executives are using these aircraft for business and leisure purposes.

Business jet travel has increased by nearly 25% in the United States alone. Small jet management companies have designed jet ownership programs that appeal to a much larger audience.

Global business jet sales

Worldwide business aircraft sales have significantly increased since the pandemic. Both individual owners and aircraft leasing companies have invested in business jets in recent years. Whether for pre-owned or brand-new planes, sales are on the rise. In 2019, the global sales for both pre-owned and new business jets were $28.3 billion.

New jet sales amounted to $16.9 billion, while pre-owned purchases totaled $11.4 billion. The year 2020 saw a brief downturn in aircraft sales only during the early months of the pandemic (March to June 2020). At the time, the global aviation industry saw a historic downturn, with global losses totaling over $160 billion.

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However, the private and business jet market picked up rather quickly compared to the commercial side of things. Private flying was much easier as there were far fewer restrictions, and ‘social distancing’ is inherent with such travel. The year 2020 ended with a very marginal decrease in total business jet sales compared to the year before. During 2020, global business jet sales were $26 billion, down just over 8% compared to 2019. Sales of new business jets accounted for $11.8 billion, while pre-owned sales were $14.2 billion.

Post-2020 sales

The year 2021 marked a full year into the recovery of the global aviation industry. Private and business jets saw an enormous uptick in jet sales in 2021. Business jet sales worldwide were up nearly 25% compared to the previous year, totaling $32.3 billion.

Global sales of brand-new jets amounted to $15.6 billion, while pre-owned sales were $16.7 billion. Notably, pre-owned sales were significantly higher that year due to global production shortages. Interested individuals and companies purchased pre-owned jets, which provide a certain level of flexibility.

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Pre-owned jets can be refurbished and reconfigured to meet owner’s requirements. Business jet management companies that offer jet memberships (such as Jet Cards) generally purchase pre-owned aircraft. Those sales come at a much lower cost to the buyer with minimal or no lead time.

But 2022 worldwide business jet sales were up nearly 6% compared to the year before, for a total of $34.1 billion. New jets sales actually decreased to $15 billion, while pre-owned sales totaled a whopping $19.1 billion. In total, the increase in business jet sales globally since 2020 is over 31%.

The High Flyers Report for 2023 forecasts global business jet sales to increase by about 2% in 2023. According to the report, total sales in 2023 will amount to about $34.6 billion, with an exciting twist of new jets forecasted to total $18.9 billion and pre-owned aircraft at $15.7 billion.

What are your thoughts on the increase in global business jet sales? Tell us in the comments section.

Source: High Flyers Report 2023