Global Jet Capital published its Q4/23 Business Aviation Market Brief this week, noting that flight operations in the business jet sector declined on a year-over-year basis while constraints on supply chains and the labor market held deliveries back in Q4/23. The report also noted that there was a slowdown in pre-owned transactions.
Q4/23 Business Aviation Industry Highlights
- Global Jet Capital reported a 1% year-over-year decline in flight operations in Q4/23, although operations were 17% higher than levels in Q4/19, pointing to an expansion in the user base for business aviation.
- OEM book-to-bill ratios hovered near one-to-one in Q4/23, with backlogs remaining at high levels.
- There was a decline in transactions in 2023 overall due to price-driven inertia between buyers and sellers in the pre-owned market and slower-than-expected new deliveries, likely due to issues with supply chains and the labor market.
- Business jet inventory levels increased in 2023, with more sellers publicly listing their aircraft, although Global Jet Capital noted that overall inventory as a percent of the fleet remained below historical averages.
- Most aircraft models reverted to historical deprecation profiles in Q4/23, although they began from higher starting points after values firmed up from 2021 to 2022.
In the report, Global Jet Capital also provided details on some of its recent transactions, including an operating lease extension for a pre-owned Gulfstream 550, an operating lease for a pre-owned Falcon 7X and a PDP with operating lease for a new Challenger 3500.
To access the full report, click here.
