November 3, 2021
Clear Skies Ahead: A Look at Business Aviation in 2022 and Beyond
Record Demand for Private Jets for Sale Predicted In the Years to Come
Multiple recent forecasts from private aviation leaders indicate that the sale of new and used private jets is expected to grow dramatically through at least 2025.
Global Jet Capital, an aircraft financing provider, predicts $162.1 billion in total transactions of both new and pre-owned jets for sale between 2021 through 2025, with a 7.4 percent compound growth rate. Data from NetJets and WheelsUp, both fleet operators, indicates similar trends, noting that jet cards are more in demand now than pre-pandemic.
With business jets so in-demand, companies seeking for private jets for sale must act quickly and work with the most trustworthy aircraft dealers to shop reputable listings on AircraftExchange.com.
The Business Jet Industry is Expected to Surpass Pre-Pandemic Success
In the report by Global Jet Capital, the company points out that flight activity is improving and has nearly returned to 2019 levels. At this rate, they believe the industry will not only fully recover, but surpass historical usage as corporate travel resumes.
The increased usage also has led to more demand from buyers. In late 2020, more than 1,200 new and pre-owned private jet transactions made it the largest quarter of sales in five years.
The report goes on to say that the growth in the industry is due to more charter and fractional usage. New private aviation customers want to avoid crowded airports; some may return back to commercial air travel as coronavirus infection rates fall, while others may purchase a private jet for sale instead.
As evidence of the boom in charter and fractional jet ownership, NetJets predicts that it will purchase more than 50 new business jets this year.
Sales Predictions for Business Jets
In 2020, unit transactions reached 3,136, to 3,308 mid-year. That number is expected to reach 3,371 units by the end of 2021. Used jet sales increased from 2,334 units in 2019 to 2,534 this year.
Looking forward, Global Jet Capital anticipates 2,959 private jet sales in 2025, with new jet deliveries reaching nearly 800 units. This is still less than new jets purchased in 2008, a total of 1,317, according to the General Aviation Manufacturers Association.
In revenue, Global Jet Capital predicts pre-owned business jet sales to increase from $11.3 billion in 2020 to $13.5 billion by the end of 2021. The revenue is likely to increase to $16.2 billion by 2025. New private jet revenue also will increase from $14.1 billion in 2020 to $16.1 billion in 2021 and $20 billion in 2025.
Forecasts for Private Jets for Sale Through 2025
Future new jet sales will vary by aircraft size, but all are expected to increase through 2025.
The jet size with the most predicted growth is midsize, with an increase of 31 percent. Demand for heavy or large jets is predicted to increase by 26 percent. Very light jet sales will increase by 17 percent, while light jet sales will increase by 16 percent.
Pre-owned jet sales also are expected to rise, with heavy or large jets being most in demand. Global Jet Capital predicts a growth in demand by 25 percent from 2020 to 2025. Used very light jets will grow in demand by 15 percent, while used light jet demand will increase by 9 percent. Midsize jets are predicted to have the least growth in demand, at just 8 percent.
The massive increase in demand for large pre-owned private jets may make it difficult to buy in the pre-owned market. Jet buyers may have to settle for jet cards or charters while they search for the right used business jet to meet their needs.
How to Buy a Used Private Jet for Sale
Businesses looking to buy a preowned private jet will need to put in more effort than before for the next few years if they intend to be successful.
And with such a high demand for business jets, shoppers will need to be wary of bait-and-switch listings that actually promote charters and other services and instead look toward ethical aircraft dealers, specifically those accredited by the International Aircraft Dealers Association.
IADA Accredited Dealers have sole access to the listings of private jets for sale on AircraftExchange.com. Along with their reputation for integrity, they also can recommend private aviation service providers for everything else you need for your private jet, including insurance, maintenance plans, and more.
When it’s time to shop for a pre-owned private jet, start your search onAircraftExchange.com.