The business jet market maintained healthy dynamics during Q2 2022. Business jet flight operations and transactions increased during the quarter, continuing an upward trend that started in the second half of 2020. OEMs again reported strong order activity that has increased backlogs across the industry and supported a strong pricing environment. Data suggests a more difficult broader economic environment that may impact future quarters. With strong demand and pragmatic behavior by the OEMs, today’s business jet market is resilient and should fare well even in an economic downturn.
- The global economy faced persistent inflation and rising interest rates in Q2. Any increased risk of broad economic decline, however, has been mitigated by a strong job market and low debt levels.
- New users entering the business aviation market and established users returning to the market resulted in flight operations 20 percent above Q2 2021.
- Strong orders drove OEM book-to-bill ratios to 1.8:1 in Q2 2022. With backlogs of $46 billion, OEMs have substantial cushion against any potential downturn.
- Business jet transactions increased 14 percent in dollar volume in H1 2022 compared to H1 2021, driven by strong pre-owned activity and steady growth in new deliveries.
- Inventory levels increased slightly in Q2 but remained well below historic levels.
- With demand strong and supply remaining at low levels, business jet bluebook values continued to increase.