Private jet use continues to decline, down 15% in two years due to post-pandemic changes
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Amid shifting travel preferences and economic recalibrations, the private jet industry has seen a significant downturn. In the first six months of this year, private jet flights are down 15% from their 2022 high, reflecting broader shifts in the luxury travel market.
Despite a temporary uptick during the Summer Olympics, which saw a surge of 713 private jet arrivals in Paris in late July, overall flight numbers have not recovered. Data from Argus International shows a decline to 610,000 private jet flights in the first half of this year, down from 645,000 the year before and 716,000 in 2022.
The decline over the past two years underscores a broader correction within the private aviation sector, following a temporary influx of new users during the pandemic. This surge in first-time private flyers is now reversing, with even the wealthiest individuals taking a cautious approach to spending.
Rob Wiesenthal, CEO of Blade, an air mobility company, noted, “There was a consensus that once people had experienced private flying, they would never go back to commercial airlines. However, we are seeing a reversal of that trend.”
While the sector continues to outperform pre-2019 numbers, the extraordinary growth seen in 2021 and 2022 is normalizing. The sector’s previous expansion, characterized by a flurry of IPOs and new market entrants, is now leading to strategic reassessments.
Wheels Up, which went public via a SPAC in 2021, has seen its stock price drop dramatically as Delta Airlines stepped in to stabilize the company. Despite the ongoing losses, Wheels Up CEO George Mattson remains optimistic about the company’s progress in integrating private and commercial travel solutions.
Market conditions have been particularly difficult for smaller charter services, many of which have had to decide whether or not to maintain their fleets.
“Smaller operators, especially those with only a handful of jets, are hit hardest,” said Doug Gollan, founder of Private Jet Card Comparisons.
The pandemic initially led to a spike in private jet usage as commercial airlines halted operations, offering an exclusive and perceived safer travel option. This led to a boom in new customers, driven by an influx of cash and a booming stock market.
But as the initial motivations for private travel have faded and costs have skyrocketed, demand has waned. Current prices for private flights are about 20% higher than they were in 2019, causing some frequent flyers to reconsider their travel budgets.
The used private jet market is also feeling the pinch, with inventories rising 17% and prices falling 7% in July, according to a Jefferies report.
However, some industry leaders see the downturn as a healthy market correction, establishing a more sustainable framework for future operations. Travis Kuhn, senior vice president at Argus, sees the cooling market as beneficial for reaching equilibrium and improving customer satisfaction.
Despite the challenges, mainstream users remain loyal to private flying, with a significant portion maintaining memberships in jet card or fractional programs. NetJets, for example, has seen a rise in fractional ownership as passengers seek reliable, high-quality service options.
As the industry navigates these transformations, the future of private aviation is set to strike a balance between luxury and convenience, catering to a discerning clientele that values both exclusivity and economic sensibility.
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