The pre-owned private jet market experienced a record yr in 2022 with growth driven by the return of corporate clients and continued growth in EMEA markets, a brand new report from Jetcraft has found.
Jetcraft’s annual Pre-Owned Business Jet Market Forecast has reaffirmed that the private jet market hit an all-time high for each hours flown and sales. Transactions for pre-owned jets hit $16.3bn in 2022, largely driven by the post-pandemic return to regional and international business travel.
There will likely be a correction in 2023 – Jetcraft forecasts total sales of $12.4bn however the five-year outlook for the pre-owned jet market is positive. The company sector returned to non-public aviation with aplomb in 2022, counting for 60% of Jetcraft’s transactions.
“The return of the company buyer proves what we’ve all the time known: the continued importance of face-to-face interactions in the connection world of business,” says Jahid Fazal-Karim, owner and chairman of the board at Jetcraft. “Video conferencing technology served a purpose for all of us when the borders were closed, but businesses recognize the worth of in-person meetings.”
Jetcraft has seen the value of pre-owned business jets rise during the last two years attributable to increased demand and provide chain issues at major manufacturers. The backlog in orders is now falling progressively in step with pre-pandemic averages and because of this normal asset depreciation is returning.
![Jetcraft report](https://elitetraveler.com/wp-content/uploads/sites/8/2023/06/20656JETCRAFTForecast2023Websiteimage-min.jpg)
The private jet market is steading itself after an unsustainable surge in growth post-lockdown, with values stabilizing at above $15.4bn annually. Jetcraft’s 2023 report breaks down the nuances present in pre-owned transaction values, explaining why average prices increased greater than expected during 2022, and the way the market is now correcting itself after an unconventional previous few years.
“Existing corporate and individual clients seeking to upgrade their aircraft will drive sales volume over the subsequent five years,” says Fazal-Karim. “First-time business jet owners proceed to play a job in market growth, with many, having tested the waters through charter or fractional ownership, purchasing their very own aircraft outright.
“From 2024, values will stabilize at above $15.4B annually, attributable to a rise in the overall transaction volume, retirement of a significant slice of Light Jets from the under 25-year-old pre-owned fleet, and a better share of larger jets entering the market.”
The market’s stability from 2024-2027 will likely be aided by the strength of the worldwide market, with EMEA customers now flying more continuously on average than their American counterparts. There’s also an expectation of growth in Asian markets, most notably China.
Younger buyers (under 50) have continued to fly more hours than their older counterparts, flying 19% more in 2022 in an additional indication that business aviation isn’t going anywhere.