Gain Exclusive Insight on the State of the Business Jet Market

In Q1 2024, the business jet market continued to normalize following the record high utilization and demand associated with the post COVID-19 pandemic period. Flight operations and transaction volume declined year-over-year and inventory levels rose. The economy also continued to face a variety of challenges impacting growth. Despite these challenges, business aviation remained resilient. Flight operations were above pre-COVID-19 levels, OEMs reported strong backlog growth, and inventory remained low, especially for younger, more desirable aircraft. As things stand, the industry is well positioned to weather any future economic downturn.

• Many economists have raised their forecasts for 2024, but challenges to future growth persist.
• Flight operations declined 2 percent year-over-year in Q1 2024 but were 16 percent above Q1 2019 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 with backlogs growing, demonstrating continued demand for new aircraft.
• Transactions declined in Q1 2024 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. 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 2024. However, younger aircraft have been more stable than older aircraft.

In Q1 2024, the business jet market continued to normalize from a period of rapid growth following the COVID-19 pandemic. Flight operations and transactions slowed from all-time highs; however, flight operations remained well above pre-COVID-19 levels and transactions remained within the range of historical averages. Over the past few quarters, a shift has emerged with aircraft inventory and values. 

During the post-COVID expansion, older aircraft became very popular due to their wide availability. However, as the market has normalized, demand for these aircraft has declined. As a result, aircraft listings and inventory for aircraft older than 12 years have increased, while values for this segment have declined. At the same time, inventories and values for 12-year-old and younger aircraft have remained largely stable. In addition to steadiness in the young pre-owned market, OEMs continue to report strong order intake and rising backlogs. As a result, the business jet market is in a strong position to remain resilient to any potential economic disruptions.

Download the Q1 2024 Market Brief