Coming off a very strong 2021 and 2022, the business jet market stabilized in H1 2023. Flight operations were down compared to 2022, but remained higher than pre-COVID levels, inventory levels continued to climb but remained below historical averages, and transactions declined from high levels over the past few years. While the economy remained resilient in Q2 2023, economists continue to keep a close eye on future macroeconomic conditions. Within the business jet industry, observers continue to monitor rising inventory levels. However, ongoing demand for business jet services, high backlogs at major OEMs, and relatively low inventory should allow the industry to weather any potential downturns.
- The economy continued to be resilient in Q2 2023, but warning signs of slowing growth persist.
- Flight operations declined 7.5 percent year-over-year in Q2 2023, but were 12.1 percent above Q2 2019 levels, demonstrating sustained demand for business aviation.
- OEM backlogs increased and book-to-bill ratio remained above 1-to-1, placing OEMs in a position to weather potential downturns.
- Transactions declined in H1 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 adjusted to new market conditions.
- Business jet inventory levels increased in Q2 2023 as more sellers publicly listed their aircraft, although levels remain well below pre-COVID levels.
- After a steady increase in values throughout 2022, most aircraft exhibited more typical depreciation profiles in Q2 2023.