In 2024, the business jet market experienced a normalization following the unprecedented surge in demand during the post-COVID-19 period.
Flight Operations
- Decline from Peak Levels: Global flight operations decreased by 2% year-over-year in Q2 2024. Despite this decline, activity remained robust, with departures 14% higher than pre-pandemic levels in Q2 2019, indicating sustained interest in business aviation.
Market Transactions and Inventory
- Stabilization of Transactions: After a period of decline, transactions stabilized by the end of Q2 2024. Original Equipment Manufacturers (OEMs) reported strong order intake and modest backlog growth, suggesting a balanced market.
- Inventory Dynamics: Total aircraft inventory increased, primarily driven by older aircraft. Younger aircraft remained in demand, leading to more stable inventory levels in that segment.
Aircraft Values
- Depreciation Trends: Most aircraft models experienced depreciation in line with historical norms during Q2 2024. Notably, younger aircraft maintained more stable values compared to older models, reflecting sustained buyer interest in newer jets.
Economic Context
- Global Economic Growth: The global economy continued to grow, with central banks beginning to discuss interest rate cuts. Factors such as geopolitical conflicts and high interest rates posed challenges, but the business jet market demonstrated resilience amid these conditions.
Forecasts and Future Outlook
- Positive Projections: Analysts projected increased demand for business jets, with new deliveries in 2025 expected to be 12% higher than in 2024. Expenditures were anticipated to rise by 11%, indicating confidence in the market’s continued growth.
- Sustained Demand: Market dynamics supported ongoing demand and price stability, particularly for larger business jet models, suggesting a favorable environment for manufacturers and investors.
Overall, the business jet market in 2024 transitioned towards a more normalized state, maintaining activity levels above pre-pandemic figures and exhibiting resilience in the face of economic challenges. The outlook for 2025 and beyond remains positive, with expectations of growth in deliveries and expenditures.
