Gain Exclusive Insight on the State of the Business Jet Market

Coming off a very strong 2021 and 2022, the business jet market began to normalize in Q1 2023. Flight operations were down compared to 2022 (although still higher than pre-COVID levels), book-to-bill ratios were around 1-to-1, listings approached 2019 levels, transactions were down from highs in 2022, and values stabilized. The biggest question going forward for the industry is the threat of overall economic recession. Overall, the business jet market remains in a strong position, with demand and backlogs remaining at high levels and inventory remaining at low levels.

• The economy remained resilient in Q1 2023. However, persistent inflation forced central banks to continue to raise interest rates, which many economists expect will slow future growth.
• Flight operations declined 4.7 percent year-over-year in Q1 2023, but were 14.1 percent above Q1 2019 levels, demonstrating continued demand for business aviation.
• OEM orders and deliveries remained in line and backlogs ended the quarter 14.2 percent higher than Q1 2022 and flat sequentially.
• Transactions declined in Q1 2023 due to slower-than-expected new deliveries, attributable to supply chain issues and a slowdown in the pre-owned market as buyers and sellers adjust to new market conditions.
• Business jet inventory levels increased in Q1 2023 as more sellers publicly listed their aircraft, although levels remain well below pre-Covid levels.
• Increases in aircraft values began to stabilize in Q1 2023, normalizing from highs in Q3 2022.

The business jet market began to reach a new normal in Q1 2023. Flight operations declined from highs in 2022 but remained above 2019 levels. OEM orders were down, but backlogs remained strong and book-to-bill ratios were above 1-to-1. Listings increased as more sellers resumed publicly listing their pre-owned aircraft and values began to stabilize. Transactions were down in Q1 2023, largely due to continued OEM efforts to increase production as well as a pause in pre-owned transactions.

For the remainder of the year, the global macroeconomic environment remains a concern. However, the business jet market retains the resilient position it established in 2021 and 2022. While demand has declined from all-time highs in 2022, the market continues to offer clients a strong value proposition and will therefore continue to attract customers and users. 

Download the Q1 2023 Market Brief