AERO

On North America

Private jet demand saw record highs in 2020 and 2021, as many wealthy individuals and businesses turned to private aviation to avoid the crowds and uncertainty of commercial travel during the COVID-19 pandemic. However, demand has since leveled off and even declined in recent months, as the pandemic has eased and commercial airlines have resumed more normal operations.

In April 2023, there were 7.7% fewer private jet flights in North America than in the same month of 2022, according to Argus, a data tracker in private aviation. This decline was even more pronounced in the smaller cabin category, with flights down 15% year-over-year.

There are a number of factors that have contributed to the decline in private jet demand. One is the improving economy, which has led more people to return to commercial travel. Another factor is the rising cost of fuel, which has made private jet travel more expensive. And finally, some of the first-time private jet users who took to the skies during the pandemic are now returning to commercial travel.

Despite the recent decline, the long-term outlook for private jet demand remains positive. The global fleet of private jets is expected to grow by 7% per year over the next decade, according to the General Aviation Manufacturers Association. This growth will be driven by a number of factors, including the increasing wealth of the global population, the growing popularity of fractional ownership programs, and the increasing demand for privacy and convenience in travel.

So, is it a good investment to own a private jet? It depends on your individual circumstances. If you fly frequently and can afford the high cost of ownership, then owning a private jet can be a good investment. However, if you only fly occasionally, then it may be more cost-effective to charter a private jet or fly commercially.

Ultimately, the decision of whether or not to own a private jet is a personal one. There are a number of factors to consider, such as your budget, your travel needs, and your personal preferences. If you’re considering buying a private jet, be sure to do your research and consult with a financial advisor to make sure it’s the right decision for you.

On Europe

Private jet demand in Europe has also seen a decline in recent months, following the trend in North America. In April 2023, there were 6.4% fewer private jet flights in Europe than in the same month of 2022, according to Argus. This decline was even more pronounced in the smaller cabin category, with flights down 12% year-over-year.

The factors that have contributed to the decline in private jet demand in Europe are similar to those in North America. The improving economy has led more people to return to commercial travel, the rising cost of fuel has made private jet travel more expensive, and some of the first-time private jet users who took to the skies during the pandemic are now returning to commercial travel.

However, there are some unique factors that are also contributing to the decline in private jet demand in Europe. One is the increasing number of capacity restrictions and flight cancellations in Europe, which has made commercial travel more unpredictable. Another factor is the growing popularity of low-cost carriers in Europe, which are offering more competitive fares.

Despite the recent decline, the long-term outlook for private jet demand in Europe remains positive. The European fleet of private jets is expected to grow by 6% per year over the next decade, according to the General Aviation Manufacturers Association. This growth will be driven by the same factors that are driving growth in private jet demand globally, such as the increasing wealth of the European population, the growing popularity of fractional ownership programs, and the increasing demand for privacy and convenience in travel.

So, what does this all mean for the future of private jet travel? It means that the market is likely to remain volatile in the near term, with demand fluctuating in response to economic conditions, fuel prices, and other factors. However, the long-term outlook for private jet travel remains positive, and the market is expected to continue to grow in the coming years.

And what to expect of the future, specially on Europe

The future of private jet travel in Europe is likely to be shaped by a number of factors, including:

• The increasing wealth of the European population. The number of high-net-worth individuals in Europe is expected to grow by 50% over the next decade, which will create a larger pool of potential customers for private jet travel.
• The growing popularity of fractional ownership programs. Fractional ownership programs allow individuals and businesses to share the cost of owning a private jet, making it more affordable for a wider range of people.
• The increasing demand for privacy and convenience in travel. Private jet travel offers a level of privacy and convenience that is not available on commercial airlines. This is becoming increasingly important to business travelers and high-net-worth individuals.
• The development of new technologies that make private jet travel more efficient and sustainable. New technologies, such as sustainable aviation fuels and electric jets, could make private jet travel more environmentally friendly. This could help to address concerns about the environmental impact of private jet travel.

Overall, the future of private jet travel in Europe looks bright. The market is expected to continue to grow in the coming years, driven by the factors mentioned above. However, the market is also likely to become more competitive, as more companies enter the market and offer a wider range of services.

Here are some specific trends that are expected to shape the future of private jet travel in Europe:

• The growth of sustainable aviation. As concerns about the environmental impact of private jet travel grow, more companies are investing in sustainable aviation technologies. This includes the development of sustainable aviation fuels, which can reduce the carbon emissions of private jets, and electric jets, which produce zero emissions.
• The rise of on-demand air travel. On-demand air travel companies, such as Wingcopter and Volocopter, are developing small, electric aircraft that can be used to transport passengers and cargo on short-haul flights. This could offer a more affordable and convenient alternative to private jet travel for some passengers.
• The increasing use of artificial intelligence (AI) in private aviation. AI is being used in a variety of ways in private aviation, including to optimize flight routes, improve maintenance schedules, and provide personalized customer service. AI is likely to play an even greater role in the future of private jet travel, as it helps to make the industry more efficient and customer-centric.

The future of private jet travel in Europe is full of possibilities. With the right technologies and business models, private jet travel can become more affordable, convenient, and sustainable. This could make private jet travel a more attractive option for a wider range of people, and help to grow the market in the years to come.