The numbers show a decrease in private jet flights, but industry experts suggest that this decline marks a healthy correction after a period of unsustainable growth. According to Travis Kuhn, Senior Vice President of Market Intelligence for Argus, a leading data tracker in private aviation, there was a 7.7% reduction in private jet flights in North America in April compared to the previous year. However, Kuhn emphasizes that this correction is a positive adjustment from the unprecedented growth the industry witnessed.
Despite the decline, the overall flight activity in the industry remained 10.3% higher last month when compared to 2019. Some insiders view this correction as beneficial, considering the challenges the industry faced, including shortages of aircraft, aircraft parts, and pilots, particularly during the peak of activity last summer.
Doug Gollan, Publisher of the Private Jet Card Comparisons newsletter, notes that many stakeholders welcome the decrease in demand, viewing it as an opportunity to recalibrate and better manage the industry’s capacity. The sentiment is echoed by Kuhn, who emphasizes that despite the dip, the private jet industry remains healthy.
Argus data for specific industry segments in April is yet to be released, but the first three months of the year showed the largest decline in private jet activity within the charter market, down 12% year over year in March compared to a 4.3% decline in owner-operated activity.
While fractional-ownership jet activity, involving companies like NetJets and Flexjet, defied the trend and increased by 6.4% year over year in March, the overall downturn in private jet travel prompts exploration into the factors behind this shift.
One prominent factor contributing to the decline is the cost. Private Jet Card Comparisons reports a significant increase in hourly fixed rates for subscription jet card programs, up 39.8% in December 2022 compared to December 2020. This surge in prices, combined with the removal of the federal excise tax on private flying, has led to a scenario where customers find the rates prohibitive.
Kevin Singh, CEO of Icarus Jet, points out that prices for certain light jets have doubled since pre-pandemic times, making them less appealing to potential travelers. However, recent developments have seen a 5.2% drop in hourly rates for jet card programs from the end of 2022 to the end of March, providing some relief.
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