Frax Driving Global Activity Jump; Flight Depts Lagging

Fractional and charter operations are driving increases in global business jet activity, but corporate activity is lagging, according to aviation analyst Jefferies. Citing WingX data and its own estimates, Jefferies noted that fractional and charter activity was up by 8% year over year (YOY) in November, but at the same time, corporate flight department activity was down by 5%.

Even so, business jet operations were up by 8% globally YOY and 5% year to date (YTD). The Asia-Pacific region led the global increases, up by 11% YOY, followed by North America (up 8% YOY) and Europe (up 1% YOY).

Underlying the continued strength post-Covid, flight hours were up 47% from 2019. Average trip duration increased by 1% YOY to about 1.7 hours. Jefferies estimated average monthly hours per aircraft at 16.2, a 3% improvement over the 15.6 a year earlier.

North America, which accounts for 72% of global departures, marked the improvement despite the fact that flights at 40 large airports were restricted for several days in the month, including at Teterboro in New Jersey.

As far as fractional operations, in addition to the YOY jump, they are up 7% YTD. Flexjet led the activity gains, up 18% YOY, followed by FlyExclusive (up 15%) and NetJets (10%). FlyExclusive hours are up by 190% since 2019, and Flexjet by 130%.

Aircraft management operations were up 3% YOY, but down by 2% YTD. Private flight departments—those operated for a private individual—were down 3% YOY but up by 2% YTD. Along with being down YOY, corporate flight departments are down by 7% YTD.

By OEM, Embraer departures were up 14% YOY in November and by 18% in the third quarter. Textron Aviation followed with 6% YOY and 3% in the third quarter, Bombardier by 8% YOY and 7% in the third quarter, and Gulfstream by 9% YOY and 6% in the third quarter.