Data shows young buyers are driving private aviation boom
According to new data from Jetcraft, a company specialising in pre-owned business aircraft sales, acquisitions and trades, younger buyers are playing a significant and increasing role in the expansion of the private aviation industry.
Ever Forward, Jetcraft’s five-year pre-owned business jet market forecast has revealed that the share of Jetcraft clients under the age of 45 has risen by 20% in the last five years and that these buyers are driving a trend towards larger aircraft purchases.
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.
Commenting on the findings, Jetcraft owner and chairman of the board Jahid Fazal-Karim said: “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.”
The Jetcraft study has also identified international growth areas for the sector, with Asia-Pacific’s UHNWI (ultra high net worth individual) population set to increase by 33% over the next five years, suggesting significant potential for pre-owned large jet transactions in the region.
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.
Last year was a record year for business aviation, with an annual total pre-owned transaction value of US$14.5 billion, a near 40% increase on 2020, principally driven by large and midsize jet purchases.
Jetcraft CEO Chad Anderson added: “Our data shows the profile of a typical pre-owned jet buyer has shifted internationally in recent years. 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.
“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$66.6 billion over the next five years.”
For more information, visit www.jetcraft.com