In the first half 2024 there was a 15% decline in private jet flights, resembling a cooling of demand from peak levels seen during the Covid-19 Pandemic.
According to Argus, private jet charters have fallen to 610,000 in comparison to 645,000 in the year 2023.
The industry peaked at 100,000 flights per month
This decline comes after a surge of private jet use during the pandemic, when health restrictions and private air travel became the preferred option due to concerns about safety.
The industry peaked in the summer of 2021, when it saw over 300,000 monthly flights.
This surge in demand caused operators to struggle with meeting the demands, which led to delays and cancellations.
Post-pandemic markets have proven to be more difficult.
Wheels Up is one of the companies that are having difficulties. In 2021 they went public through a SPAC.
Wheels Up stock is down over 90% and company has reported $97 Million in net losses for second quarter 2024.
VistaJet, meanwhile, is also struggling with its debt.
Costs rising and influencing consumer spending
Many former users of private jets have reduced the frequency or switched to commercial travel as global travel restrictions are easing.
Private jets are a better alternative than commercial flight in 2020.
As the world becomes more open, many of these travelers are opting for commercial flights for their routine travels, and reserving private aircraft for complex destinations or distant locations.
Doug Gollan of Private Jet Card Comparisons notes that small operators who have fewer aircraft are especially vulnerable to a decline in demand.
The rising costs of around 20 percent are affecting spending decisions.
Gollan’s survey revealed that 87% private jet users alternate between commercial flights and private aircraft based on travel requirements.
What is a sustainable market that balances the economy?
Some industry experts see the downturn as an opportunity to create a market that is more balanced and sustainable.
Prices fell by 7% and the number of business jets available for sale in July increased 17% compared with last year.
Wait times for some models have dropped from 3 or 4 years down to 2 years.
NetJets – a leading fractional owner and part of Berkshire Hathaway – saw an increase of 12% in fractional flight numbers in the first six months of 2024. This amounted to 308,000 flights.
The trend indicates that, while private jet flight numbers are on the decline, there is still a strong core of frequent flyers who prefer the convenience and security of fractional ownership to traditional charter flights.
The private aviation industry will adapt to these changes by focusing on sustainability and customer satisfaction. This will create a market that is more refined and stable.
The post Private Jet Use Drops 15% Since 2022 As Covid’s Surge Fades may be updated as new developments unfold.
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