The Private Jet Business

You wouldn’t know it from Instagram, but private jet deliveries are down 40% since 2007 and are about flat since the late 1970s. There has been a small boom in deliveries since the pandemic, but this is off of a very low base.

It’s America’s Game

The private jet business is a North American business with the region taking 70% of deliveries. Regulatory restrictions in Asia and cultural norms in Europe damp the growth potential of these regions.

No Growth

In the US, private jet flights have been stagnant over the past 15 years. During this time period, fractional business models like NetJets have grown to represent most of the private jet market. These fractional models mean the fleet is better utilized and better maintained, which means travelers need fewer jets. And to make matters worse for private jet makers, fractional operators demand lower purchase prices than individual buyers do. Perhaps this is a preview of the future for auto manufacturers as self-driving cars boost ride-sharing and fractional car ownership.