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Global aircraft brokerage Jetcraft projected nearly a $50 billion market for preowned business jets through 2024 in its five-year preowned market forecast released today. “Covid-19 has affected many industries, including our own,” said Jetcraft owner and chairman Jahid Fazal-Karim. “However, business aviation has started to recover and the reduction in commercial flight activity provides a real opportunity for the sector to further expand its customer base and secure long-term prosperity.”
Despite this year’s reduced international trade activity, the World Trade Association forecasts that volume will rebound in 2021 and the number of ultra-high-net-worth individuals is expected to grow by 5 percent a year through 2024. Based on these estimates, along with its own past transactional data and customer insights, the Jetcraft report calls for more than 10,000 preowned jet transactions worth $48.8 billion by 2024. While the number of transactions predicted is nearly 1,000 more than over the past five years, the estimated value of those transactions is $3.2 billion less.
“We are forecasting a continued increase in large jet transactions, albeit at a slower pace than in previous years,” noted Fazal-Karim, adding that younger and high-net-worth buyers, as compared to corporate or governmental customers, are more likely to invest in this aircraft segment. “These trends truly demonstrate the potential of the large jet category, which remains poised for long-term growth.”
Though the Covid pandemic has wreaked havoc on many planning models, global aircraft brokerage Jetcraft recently released its Five-year Pre-Owned Market Forecast, which predicts nearly $50 billion in used business jet transactions over the coming several years.
“Covid-19 has affected many industries including our own,” said Jetcraft owner and chairman Jahid Fazal-Karim. “However, business aviation has started to recover and the reduction in commercial flight activity provides a real opportunity for the sector to further expand its customer base and secure long-term prosperity.”
Despite 2020's reduced international trade activity, the World Trade Association projects that volume will rebound in 2021, while the number of ultra-high-net-worth individuals is expected to grow by five percent a year through 2024, and based on these estimates, along with its own past transactional data and customer insights, the Jetcraft report forecasts more than 10,000 pre-owned jet transactions by 2024, worth $48.8 billion. While the number of pre-owned transactions predicted is nearly 1,000 more than what transpired over the past five years, the estimated value of those transactions is $3.2 billion less.
“We are predicting a decrease in total transaction value as compared to the last five years, which is largely attributed to segment shifts and price declines in 2020 stemming from the Covid-19 pandemic,” explained company president Chad Anderson. “However a return to stability is predicted over the forecast period beginning in 2021.”
According to the company, over the past five years, large jet transaction value accounted for, on average, 45 percent of total annual transaction value and is predicted to average 47 percent between 2020 and 2024. Jetcraft noted that due to the international border shutdowns and quarantines that limited the utility of long and ultra-long-range business jets, the value of this segment declined in 2020 to 43 percent of the annual value, which has impacted the total value during the outlook period, despite the increase in transaction numbers.
“We are forecasting a continued increase in large jet transactions, albeit at a slower pace than in previous years,” noted Fazal-Karim. “Our…transactional data shows large jets representing a strong share of purchases by younger buyers, and that high net worth buyers types, as compared to corporate or governmental buyers are more likely to invest in this aircraft segment. These trends truly demonstrate the potential of the large jet category which remains poised for long term growth.”