- News
- Aug 30, 2024
- 3 min read
Global Jet Capital: Business Aviation Market Remains Resilient
Backlogs increased by nearly 2%, while flight activity rose 6% from the first quarter of this year.
According to a second-quarter business aviation market review published this week by Global Jet Capital (GJC), the business jet market remained resilient in the second quarter of this year, despite a decline in flight hours and an increase in inventory levels compared with last year. In the second quarter, OEMs reported significant backlog growth of nearly 2%, while flight activity increased by 6% compared with the first quarter of this year. “Thanks to the industry’s inherent value proposition, including personal safety, flexibility, productivity and comfort, the user base has expanded structurally, and a significant share of these new users will continue to use business aviation services in 2024,” GJC said.
As supply chain and workforce issues continued to be resolved following the pandemic, aircraft manufacturers were able to increase production and revenue, causing the industry-wide book-to-bill ratio to decline from 1.3:1 in the first quarter to 1:1 in the second quarter. This level is expected to remain unchanged through the end of the year.
Led by older aircraft, available aircraft inventory continued its upward trend in the second quarter, reaching 7.7% of the existing fleet. According to GJC, the number of aircraft more than 13 years old on the market increased by 11.9% in 2024, compared with 5.1% for aircraft aged 12 years or less. With this growth, aircraft aged 13 years and older account for 71% of all listings.
Following a decline in 2023 and early 2024, total aircraft transaction volume stabilized in the latest quarter and increased when measured in dollars. Year over year, transaction value rose by more than $1.5 billion, an increase of 12.3%.
According to a second-quarter business aviation market review published this week by Global Jet Capital (GJC), the business jet market remained resilient in the second quarter of this year, despite a decline in flight hours and an increase in inventory levels compared with last year. In the second quarter, OEMs reported significant backlog growth of nearly 2%, while flight activity increased by 6% compared with the first quarter of this year. “Thanks to the industry’s inherent value proposition, including personal safety, flexibility, productivity and comfort, the user base has expanded structurally, and a significant share of these new users will continue to use business aviation services in 2024,” GJC said.
As supply chain and workforce issues continued to be resolved following the pandemic, aircraft manufacturers were able to increase production and revenue, causing the industry-wide book-to-bill ratio to decline from 1.3:1 in the first quarter to 1:1 in the second quarter. This level is expected to remain unchanged through the end of the year.
Led by older aircraft, available aircraft inventory continued its upward trend in the second quarter, reaching 7.7% of the existing fleet. According to GJC, the number of aircraft more than 13 years old on the market increased by 11.9% in 2024, compared with 5.1% for aircraft aged 12 years or less. With this growth, aircraft aged 13 years and older account for 71% of all listings.
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Following a decline in 2023 and early 2024, total aircraft transaction volume stabilized in the latest quarter and increased when measured in dollars. Year over year, transaction value rose by more than $1.5 billion, an increase of 12.3%.
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