According to new data from Jetcraft, younger buyers are playing a growing role in the private aviation industry.
Jetcraft specialises in pre-owned business aircraft sales, acquisitions and trades. Ever Forward, Jetcraft’s five-year pre-owned business jet market forecast, reveals that the share of Jetcraft clients under 45 has risen by 20% in the last five years. Further, the company said these buyers are driving a trend towards larger aircraft purchases, with their average transaction price hitting US$25m, some 31% higher than their over-45 counterparts. Nearly a quarter (24%) of Jetcraft’s pre-owned jet buyers in Europe are younger than 45, with this figure rising to 38% in the Middle East and Africa.
“We are now entering a post-pandemic business cycle from a new, higher starting point, with a predicted steady upward trajectory fuelled by more and younger first-time buyers entering the market, alongside strong demand for larger jets and a growing UHNWI population,” said Jahid Fazal-Karim, owner and chairman of the board, Jetcraft.
The Jetcraft study has also identified international growth areas for the sector, with Asia-Pacific’s UHNWI population predicted to increase by 33% over the next five years, suggesting potential for pre-owned large jet transactions in the region.
“Our data shows the profile of a typical pre-owned jet buyer has shifted internationally in recent years,” said Chad Anderson, chief executive officer, Jetcraft. “This younger buyer persona offers real lifetime value to our industry, while the predicted growth of the UHNWI population also underlines the potential for the future of the sector.”
Ever Forward predicts a much more rational market over the next five years when compared with the 2004-2008 boom, with average purchase prices returning to pre-pandemic levels.
The company said 2021 was a record year for business aviation, with an annual total pre-owned transaction value of US$14.5bn, a near 40% increase on 2020, principally driven by large and midsize jet purchases.
“After stabilising in the wake of a post-pandemic surge, pre-owned transactions are expected to maintain their new higher base and growth rates, reaching 10,921 transactions valued at US$66.6bn over the next five years,” said Anderson.