Gain Exclusive Insight on the State of the Business Jet Market

In Q2 2024, the business jet market continued to normalize following the record high utilization and demand in the post COVID-19 pandemic period. 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, 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.

• The global economy continues to grow, and central banks have begun to discuss interest rate cuts.
• Flight operations declined 2 percent year-over-year in Q2 2024 but were 6 percent higher than Q1 and 14 percent above Q2 2019 pre-COVID-19 levels, reflecting an enduring expansion in the user base for business aviation.
• OEM book-to-bill ratios were 1:1 in Q2 and there was a 28 percent year-over-year increase in revenue.
• Transactions were stable through the end of Q2 2024 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, 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 2024. However, younger aircraft were 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 slowed from all-time highs but remained above pre-COVID-19 levels. Transactions stabilized in the quarter after a period of declines. Inventory and values have experienced a shift over the past few quarters. 

During the post-COVID expansion, older aircraft became very popular due to their wide availability. However, as the market normalized, demand for these aircraft declined. As a result, aircraft listings and inventory for aircraft older than 12 years increased, while values for this segment declined. At the same time, inventories for 12-year-old and younger aircraft increased at a much slower rate and values were stable. OEMs continued to report strong order intake and modestly rising backlogs. As a result, the business jet market remained resilient and is expected to remain active in the second half of 2024.

Download the Q2 2024 Market Brief