Global Jet Capital: Business Jet Market Continued to Normalize in Q1/24



Global Jet Capital released its Q1/24 Business Aviation Market Brief, noting that flight operations and transaction volume declined year-over-year and inventory levels rose. Despite the continued economic challenges impacting growth, the report says, business aviation remained resilient.

The report also noted that flight operations were above pre-COVID-19 levels, OEMs reported strong backlog growth and inventory remained low, especially for younger, more desirable aircraft.

Q1/24 Business Jet Market Highlights:

  • Many economists have raised their forecasts for 2024, but challenges to future growth persist.
  • Flight operations declined 2% year over year in Q1/24 but were 16% above Q1/19 levels, reflecting an enduring expansion in the user base for business aviation.
  • OEM book-to-bill ratios were around 1.3-to-1 in Q1/24 with backlogs growing, demonstrating continued demand for new aircraft.
  • Transactions declined in Q1/24 due to slower-than-expected new deliveries (attributable to ongoing supply chain and labor issues and delays in aircraft certification) and price-driven inertia between buyers and sellers in the pre-owned market.
  • Aircraft inventory increased in Q1/24, but it is important to note that a split between older aircraft and younger aircraft has emerged. Older aircraft inventory continued to increase, while inventory of younger aircraft has been stable for three quarters.
  • Most aircraft models continued to experience depreciation in line with historical norms during Q1/24. However, younger aircraft have been more stable than older aircraft.

The full report is available online: https://www.globaljetcapital.com/q1mb-2024.


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