In Q3 2022, the business jet market exhibited strong performance, continuing a trend that began in the second half of 2020. Driven by new users and returning customers, flight operations improved on a year-over-year basis, while demand translated into strong order activity as reported by manufacturers. Aircraft listings have increased in 2022; however, pricing remained stable in Q3 as overall levels were still low. With inflation and supply chain issues continuing in Q3, the biggest question going forward is the overall health of the global economy. Due to business aviation’s unique value proposition, strong demand, and pragmatic behavior by the OEMs, however, the business jet market has remained resilient.
- The global economy faces persistent inflation and rising interest rates but remained resilient in Q3 due to a healthy labor market and service sector growth.
- Flight operations in the quarter were above year-ago levels due to a combination of continued demand from new users and the re-entry of historical users to the market.
- OEMs continue to experience strong demand and backlogs now stand at $43.5 billion, a 38.8% increase compared to Q3 2021.
- Growth in transaction volume slowed in Q3 2022 as the pre-owned market normalized when compared to a record 2021 and new deliveries were slowed by supply chain issues.
- As listings increased in 2022, inventory levels were higher in Q3 than earlier in the year but remained well below historic levels.
- With demand strong and supply remaining at low levels, business jet bluebook values increased in Q3.