In Q2 2024, the business jet market continued to normalize following record high utilization and demand in the post COVID-19 pandemic period. Flight operations declined and inventory levels increased year-over-year. The economy also faced a variety of factors impacting growth. Despite these challenges, the business jet market remained resilient. Transactions stabilized after declines in Q1, OEMs reported strong order intake and modest backlog growth, flight operations remained above pre-COVID-19 levels, and inventory remained low—especially for younger, more desirable aircraft. As things stand, the industry is well positioned to weather any future economic downturn.
- The global economy continues to grow and central banks have begun to discuss interest rate cuts.
- Flight operations declined 2 percent year-over-year in Q2 2024 but were 6 percent higher than Q1 and 14 percent above Q2 2019 pre-COVID-19 levels, reflecting an enduring expansion in the user base for business aviation.
- OEM book-to-bill ratios were 1:1 in Q2 and there was a 28 percent year-over-year increase in revenue.
- Transactions were stable through the end of Q2 2024 as OEMs continued to work towards resolving supply chain and labor constraints and activity began to pick up in the pre-owned market.
- Total aircraft inventory increased in Q2, driven by older aircraft. Younger aircraft remained in demand; therefore inventory of younger aircraft was more stable.
- Most aircraft models continued to experience depreciation in line with historical norms during Q2 2024. However, younger aircraft were more stable than older aircraft.
