NAFA member Global Jet Capital releases their Q1 2024 Business Aviation Market Brief.
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.
Read the full Business Aviation Market Brief here
This market brief was published by Global Jet Capital on June 18, 2024.