Coming off a very strong 2021 and 2022, the business jet market began to normalize in Q1 2023. Flight operations were down compared to 2022 (although still higher than pre-COVID levels), book-to-bill ratios were around 1-to-1, listings approached 2019 levels, transactions were down from highs in 2022, and values stabilized. The biggest question going forward for the industry is the threat of overall economic recession. Overall, the business jet market remains in a strong position, with demand and backlogs remaining at high levels and inventory remaining at low levels.
- The economy remained resilient in Q1 2023. However, persistent inflation forced central banks to continue to raise interest rates, which many economists expect will slow future growth.
- Flight operations declined 4.7 percent year-over-year in Q1 2023, but were 14.1 percent above Q1 2019 levels, demonstrating continued demand for business aviation.
- OEM orders and deliveries remained in line and backlogs ended the quarter 14.2 percent higher than Q1 2022 and flat sequentially.
- Transactions declined in Q1 2023 due to slower-than-expected new deliveries, attributable to supply chain issues and a slowdown in the pre-owned market as buyers and sellers adjust to new market conditions.
- Business jet inventory levels increased in Q1 2023 as more sellers publicly listed their aircraft, although levels remain well below pre-Covid levels.
- Increases in aircraft values began to stabilize in Q1 2023, normalizing from highs in Q3 2022.