Buisness aviation news

Global bizjet activity was blunted by Hurricane Milton last week, principally in the busiest US State Florida. European bizjet activity is slipping back, particularly in France. Bizjet activity in the Middle East is also wilting under the weight of regional conflict.

Business jet demand is navigating turbulent waters, with the approach of the US elections, outgoing and incoming hurricanes across the South-East of the country, economic stagnation in Europe and escalating conflicts in the Middle East. The combined headwinds are clearly widening the declines in comparison to 2023, which itself was a reset from the post-Covid high points in 2022.

Bizjet demand picked up in the last week, having been notably weaker in the first half of September. The trend in the key US market was still slightly negative, with the hurricane impact in Florida offsetting the growth in bizjet activity in Texas. In Europe, UK bizjet activity was up but demand has stagnated in Central and Southern Europe.

Business jet demand is ebbing fast this month, particularly in the small and midsize fleets. In the US, the weakest spot is California. In Europe, the post Olympics hangover is showing up in much lower flight activity, notably in Germany where flight activity is trending down by % this month.

Aero Asset released its 2024 Half Year Heli Market Trends Twin-Engine edition. Aero Asset leverages proprietary market intelligence to deliver a comprehensive analysis of the market, allowing readers to navigate the shifting dynamics of the preowned twin-engine helicopter market.

Bizjet flight activity is slowing fast in the US this month. The declines clearly derive from waning demand in the smaller end of the market, particularly older entry level and midsize jets. Business jet activity in California has actually fallen behind 2019 levels. The European market hasn’t seen the same relapse, but still weak in Central Europe, and much closer than the US to 2019 levels.

Bizjet demand has wobbled in September, significantly behind September last year, the slowdown mainly in the US, with bizjet cycles in California down 15% YOY. In Europe, both France and Germany saw big drops in demand this month.

The General Aviation Manufacturers Association (GAMA) published the Second Quarter 2024 General Aviation Aircraft Shipment and Billing Report. The general aviation aircraft manufacturing industry’s results for the first six months of 2024, when compared to the same period in 2023, show increased deliveries across the piston airplane, business jet and piston helicopter segments along with an increase in the overall value of aircraft shipments.

The European market is slowing sharply in September compared to the Olympics-boosted August, also now trailing September 2023, especially in the Charter market, and especially in Germany, Italy also faring less well. In the US, the year-on-year Labor Day bizjet activity was slightly adrift, although it spiked in Florida, flights up 12% YOY, 9% gain in Part 135 and 91K flights.

Part 135 and 91K flights out of Texas and Florida were up more than 10% in the latest week and are trending up 5% in August, contrast the 1% decline in bizjet activity in the US, 8 months into 2024. The late summer surge in the US compares to a post-Olympics slowdown in Europe, although Nice is still seeing strong growth, and there are record breaking levels of flight activity at Tivat in Montenegro.

The US market is trending just a fraction below last year, with weakness in corporate flight departments, whilst fractional operations continue to hit peaks. The popularity of fractional programs is particularly evident in transatlantic visits to Europe this summer, catalysed by the Olympics. Within Europe, US visitors have driven spikes in activity since the start of the Olympics, demand starting to taper off in France this week but still very strong in the UK.

The importance of the leisure market in Europe is conspicuous this month as the Olympics sees a surge in high-end European tourists. The US market has had a weak start in August, also true of the main business jet destinations in Asia and Africa.

The bizjet market´s bright spot this summer is Europe, with the Olympics drawing record numbers of private jet movements to France, the UK also enjoying the influx of sports fans into the region. Bizjet demand in the US seems to have hit the brakes in the last couple of weeks, having had a relatively strong July.

As predicted, the Olympics venues have attracted business jet arrivals from all over the world as dignitaries, heads of corporations and celebrities flocked to the opening ceremony and sporting events. The Olympics appears to be very popular with US visitors, many coming via the UK. The Olympics bounce is helping the market recover from a relatively weak H124, with year-to-date trends now flat compared to last year.

International Aircraft Dealers Association (IADA) members reported a balanced market for preowned business aircraft in the second quarter of 2024. Sales are steady and values of late model aircraft remain strong, according to IADA’s Second Quarter 2024 Market Report.

In Week 28 (8th – 14th July), total global business jet departures were down 2% compared to Week 28 in 2023, equal to the last 4-week trend of 2% decline. Global Part135 & 91K activity on par with W28 in 2023, the 4-week trend 1% ahead of last year. So far this year the global bizjet fleet has flown just under 3.2 million flight hours, 2% fewer than last year. Across the 15,600 active operators there have 25,000 active business jets flying from January 1st through to July 14th. The global bizjet fleet has had a fair start to July, departures flown just -0.5% behind comparable July last year.

Week 27 2024 almost exactly matched Week 27 2023, with variable geographic trends, the US seeing a bump up, in contrast to declines in June, and was especially strong in Part 135 and 91K operations, most notably in Texas. Europe saw a 3% slide, mainly in private and corporate activity. Germany and the UK are seeing stronger YOY activity, tied directly to the draw of major sporting events.

The new sanctions package approved by the European Union on June 24 for the first time specifically targets Russia’s business aviation sector, but the industry seems to have adapted to the wartime restrictions since 2022.

The first half of 2024 shows bizjet utilisation tapering slightly on 2023 but still well up on 2019. The US market is just 1% weaker than last year, with Florida, super midsize jets, and Fractional ops looking robust. European bizjet demand is strengthening this summer, notably in Germany. The Middle East is seeing weaker bizjet usage this year, especially in Saudi.

In Week 25 (17th – 23rd June), total global business jet activity measured by number of sectors flown fell 4% compared to Week 25 in 2023, compared to the last 4-week trend of 2% decline. Part 135 & 91K bizjet activity in week 25 fell 3% compared to last year. Year to date 2024, bizjet sectors have fallen 1.4% compared to last year, with flight hours falling 1.9% behind. Respectively for sectors and hours flown, the market is 2.8% and 3.4% behind comparable 2022. The active bizjet fleet this year is 2.5% larger than in 2023, up 8% on 2022.