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.
Global
In Week 33 (12th – 18th August), there were 69,236 business jet sectors flown globally, 2% fewer than Week 33 in 2023, and compares to 76,524 bizjet flights globally in Week 26 2024. Week 33 was relatively weaker than either the 4-week YOY trend or the YTD-24 vs 2023 trend, both close to -1%. Just under half all the flights in Week 33 were operated by Fractional operators and aircraft on a charter certificate, and these flights were flat YOY and are trending up 1% in the last month.
North America
In Week 33, there were 48,647 business jet departures departing North American airports, 1% fewer than in Week 33 2023. The dominant US market accounted for 46,759 North American bizjet departures, also trending 1% below last year. Florida is flat, California slightly down, Texas slightly u, these 3 States accounting for 28% of all US activity. In the fractional and charter markets, the respective Week 33 trends in these States are -1%, 2% and strong growth of 5% (in Texas).
Fractional operators in the United States are flying hot so far this month, flying more sectors than any comparable August in the last 5 years. Departures flown by business jet operators are up 10% year on year, up by 57% compared to 5 years ago. Fractional fleets represent 23% of all business jet departures in the US so far this month, despite less than 1,000 active tails out of the 12,974 active bizjet tails departing US airports this month. Second busiest operator type this month is Corporate Flight Departments, activity trailing 16% behind last year, a full 22% behind August 2019.
Chart 1: Fractional Operators, departing US airports 1st – 18th August 2024 vs previous years.
Just 4% of North American fractional departures this month have gone to destinations outside the United States. The substantial growth in Fractional Trans-Atlantic (US to Europe) activity this summer appears to have been Olympic Games driven. Connections from the US to France have increased by 91% this month compared to August last year. Almost a third of flights are to the United Kingdom, departures up 121% compared to last August. NetJets dominate Fractional Trans-Atlantic services this month, over two thirds of all Fractional departures flown by NetJets and their subsidiaries. So far this month 105 of the total of 671 bizjet departures departing the US for Europe have been Fractional, with the Global Express and Gulfstream 600 platforms the most popular.
Chart 2: Fractional Operators, US – Europe, most aircraft types flown between 1st – 18th August
European Region
In Week 33 European bizjet activity dropped 1% compared to Week 33 last year. This marks a comedown from several weeks of above-par growth in Europe, with the last 4-week trend at +4%. Bizjet activity in Week 33 compared to Week 32 was down by 18%. In Germany, demand for business jets maintains its slower pace as we’ve seen all summer. Bizjet activity in Italy, which has hit post-Covid peaks for most of this year, is also hitting the buffers, flights down by 5% this week, 14% fewer flights than in Week 32. Bizjet activity in the UK was still up by 2% YOY, with airport level analysis showing, the strongest bizjet growth two London airports, double-digit growth at EGGW and EGWU, although EGKB still has the largest growth compared to 5 years ago.
Chart 3: Business Jet departures from London airports, 1st – 18th August 2024.
By operator type, Charter and Corporate Flight department activity is substantially slower than it was last year, whereas, again, Fractional operations are at peak levels. European Fractional departures are 8% ahead of last August, France , Italy and the UK the strongest performing. For example so far this month we have seen a 19% year on year increase in United Kingdom – France flights. Europe-wide the busiest fractional airport pair this month is Olbia to Nice, 16 flights, 78% more than last August, the reverse of the route is the second busiest airport pair.
Chart 4: Fractional Bizjet city flows, Europe, 1st – 18th August 2024
Rest of World
Outside of the US and Europe, the rest of the world is seeing softer bizjet demand in Week 33. Bizjet activity out of the Middle East fell by 10% compared to same week last year, and is trending down 4% in the last four weeks. Bizjet activity out of Africa fell almost 30% compared to last year. Bizjet demand in Asia were on par with W33 last year, Africa up 7% and South America up 13%. As in the US and Europe, fractional fleet operations in ROW are at their highest in the last 5 years, although representing a smaller market share than in Europe and the US, just 7% of ROW departures this month.