Report: Jet Card Pricing, Daily Minimums on the Rise

The average pricing for jet cards increased and became more restrictive in the first three months of this year, according to analysis by Private Jet Card Comparisons (PJCC).

The company analyzed more than 80 providers and 1,000 programs and found that hourly rates for jet cards increased by 1.6% compared to the fourth quarter and by 2.5% from a year ago. As of March 31, the average hourly rate was $11,426, ranging from $6,729 per hour for turboprops to more than $19,000 an hour for ultra-long-range jets. Light jets averaged $8,563 per hour.

The price increases, which include fuel surcharges and the 7.5% federal excise tax, come as jet fuel prices have doubled year over year. Also rising were the daily minimums: the amount of flight time charged even if the actual flight takes less time. According to PJCC, the average daily minimums increased by 11.6% quarter to quarter and 19% year over year, indicating increasing concern by jet card providers over short flight profit margins.

“Average hourly rates only increased modestly; however, flying terms, including daily minimums, peak days, and lead time to book all increased,” said PJCC president and editor-in-chief Doug Gollan. “Since most guaranteed jet card programs have rate locks for at least 12 months, increasing the daily minimums is a de facto price increase for shorter flights.”