Private jet flights decrease, industry faces challenges with falling demand and increased prices

From CNBC: 2024-08-16 09:33:42

Private jet flights have declined 15% in the first half of 2024 compared to 2022’s peak, with 610,000 private jet charter flights recorded. The industry is facing falling demand despite a brief uptick during the Summer Olympics. Nonrecurring spikes in the past years have shown signs of a coming shakeout.

Wheels Up, a public company, reported almost 40% year-over-year decline in members. Jet It ceased operations last year, and VistaJet faced debt concerns. Smaller operators may soon make tough decisions due to idle fleets and dwindling demand.

Private jet industry saw a surge during Covid but faces challenges now. Prices soared by 20% from 2019 levels, leading some to switch to commercial flights or forego private jet travel entirely. Used business jets for sale and prices have increased, showing a decreased demand for private jet travel.

Despite slowing demand, NetJets, a fractional ownership company, saw a 12% increase in fractional flights in the first half of 2024. Industry experts see this as a shift towards more balanced and sustainable growth in the private aviation sector.

Heavy users of private jets remain loyal despite the industry’s challenges, with 95% of those who started flying private during Covid still flying privately. NetJets’ fractional ownership model has attracted new fliers due to its reliability and quality.



Read more at CNBC: Private jet flights: Covid-era demand wanes