In Q2/24, the business jet market continued to normalize following record high utilization and demand in the post COVID-19 pandemic period, according to the Q2/24 Business Aviation Market Brief published by Global Jet Capital.
Flight operations declined and inventory levels increased year-over-year. The economy also faced a variety of factors impacting growth. Despite these challenges, the business jet market remained resilient. Transactions stabilized after declines in Q1/24, OEMs reported strong order intake and modest backlog growth, flight operations remained above pre-COVID-19 levels and inventory remained low — especially for younger, more desirable aircraft. As things stand, the industry is well positioned to weather any future economic downturn.
Q2/24 Highlights:
- The global economy continues to grow, and central banks have begun to discuss interest rate cuts.
- Flight operations declined 2% year-over-year in Q2/24 but were 6% higher than Q1/24 and 14% above Q2/19 pre-COVID-19 levels.
- OEM book-to-bill ratios were 1:1 in Q2/24, and there was a 28% year-over-year increase in revenue.
- Transactions were stable through the end of Q2/24 as OEMs continued to work towards resolving supply chain and labor constraints and activity began to pick up in the pre-owned market.
- Total aircraft inventory increased in Q2/24, driven by older aircraft. Younger aircraft remained in demand; therefore, inventory of younger aircraft was more stable.
- Most aircraft models continued to experience depreciation in line with historical norms during Q2/24. However, younger aircraft were more stable than older aircraft.
The full report is available online: https://www.globaljetcapital.com/q2mb-2024.
