Global Jet Capital published its Q3/23 Business Aviation Market Brief this week, noting that flight operations in the business jet sector are down compared with 2022 but above pre-COVID levels, inventory levels have climbed but remain below historical averages and transactions have declined from recent high levels.
Q3/23 Business Aviation Industry Highlights
- Flight operations declined 3% year-over-year in Q3/23 but were 14% above Q3/19 levels, demonstrating sustained demand for business aviation.
- OEM backlogs increased and book-to-bill ratios remained above one-to-one, placing OEMs in a position to weather economic downturns.
- Transactions declined in the first three quarters of 2023 due to slower-than-expected new deliveries (attributable to supply chain and labor issues) and price-driven inertia between buyers and sellers in the pre-owned market.
- As more sellers publicly listed their aircraft, business jet inventory levels increased in Q3/23, although levels for the overall fleet remained below historical averages.
- Most aircraft models reverted to historical depreciation profiles in Q3/23, albeit from a higher starting point following a firming in values from 2021 to 22.
In the report, Global Jet Capital also provided details on some of its recent transactions, including a PDP with operating lease for a new Gulfstream G500, a senior debt loan for a pre-owned Gulfstream G550 and a finance lease for a pre-owned Bombardier Challenger 605.
To access the full report, click here.
