The preowned private jet sales market looks to cool off from its 2021 peak, but expect more demand & growth

The company released its Business Jet Market Forecast on Monday, projecting $186.8 billion in total transaction volume of new and pre-owned transactions between 2022 and 2026, with a compound annual growth rate of 5.1% over the same timeframe.

The report forecasts heavy and medium jet demand increasing at faster rates than other size categories. North America will remain the largest business jet market over the next five years, followed by Europe.

“Additionally, Latin America will be an important pre-owned market,” a statement from the company says.

“If you are active in the business aviation environment, you recognize that despite the continuing negative effect of COVID-19 on world health and various business sectors, its effect on business aviation has been altogether different,” said Global Jet Capital CMO Andrew Farrant. “The pandemic more broadly socialized a value proposition those of us in the business aviation industry have always understood. It’s the unique value proposition of business aviation, supported by a mature industry demonstrating balanced supply and demand dynamics, that will support sustainable growth for the foreseeable future.”

The report predicts that total new and pre-owned business jet transaction unit volume will drop 8% in 2022, with pre-owned transactions taking a step back from 2021’s all-time high volumes. However, transaction dollar volume will increase a projected 3% due to the expected increase in new deliveries and growing demand for larger jets.

“Major aircraft manufacturers reported strong order intake during 2021, resulting in increasing backlogs,” the report states. “As a result, most manufacturers plan to increase production over the next few years.”

Global Jet Capital expects new deliveries to increase 7% in 2022, with new delivery dollar volume gaining 16%.

The report comes on the heels of a recap from the General Aviation Manufacturer’s Association (GAMA) of the first quarter of 2022. It showed aircraft deliveries increased 14.7% year to year, while aircraft prices dropped nearly 6% over the same timespan.