Private jet usage drops 15% since 2022 as Covid-era surge fades

Private jet flights have experienced a significant 15% drop in the first half of 2024, reflecting a cooling off from the peak demand seen during the Covid-19 pandemic.

According to Argus International, the number of private jet charters fell to 610,000 from 645,000 in 2023 and 716,000 in 2022.

At its peak, industry saw 100,000 flights a month

The decline follows an unprecedented surge in private jet usage during the pandemic when private aviation became a preferred choice due to health concerns and travel restrictions.

At its peak, the industry saw over 100,000 flights per month, with a record 300,000 flights in July 2021.

However, this surge created operational strain, resulting in delays and cancellations as operators struggled to meet demand.

The post-pandemic market has proven more challenging.

Companies like Wheels Up, which went public via a SPAC in 2021, are facing difficulties.

Wheels Up’s stock has plummeted by over 90%, and the company reported a $97 million net loss for the second quarter of 2024, alongside a 29% decline in membership.

Similarly, Jet It ceased operations last year, and VistaJet is grappling with debt concerns.

Rising costs influencing spending decisions

As global travel restrictions ease, many former private jet users have reverted to commercial flights or reduced their private travel frequency.

In 2020, private jets were a safer alternative to commercial flights.

Now, as the world opens up, a significant portion of these customers are choosing commercial airlines for routine trips, reserving private jets for more complex or remote destinations.

Doug Gollan, founder of Private Jet Card Comparisons, notes that smaller operators with fewer jets are particularly vulnerable as demand wanes.

Rising costs, estimated to be around 20% higher than in 2019, are also influencing spending decisions.

Gollan’s survey reveals that 87% of private jet users now alternate between commercial and private flights based on their travel needs.

A sustainable and balanced market?

Despite the current downturn, some industry experts view it as an opportunity for a more sustainable and balanced market.

The number of used business jets for sale increased by 17% in July compared to the previous year, with prices softening by 7%.

While new jet orders remain strong, wait times have decreased from three or four years to about two years for many models.

NetJets, a major player in fractional ownership and part of Berkshire Hathaway, saw a 12% increase in fractional flights in the first half of 2024, totaling 308,000 flights.

This trend suggests that while overall private jet flights are declining, the core market for frequent fliers remains robust, with many opting for the security and convenience of fractional ownership over traditional charter services.

As the private aviation sector adapts to these changes, the focus will shift towards sustainability and customer satisfaction, setting the stage for a more stable and refined market landscape.

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