In Q4 2021, the business jet industry was driven by demand from new and established users, business aviation flight activity was high, the major OEMs reported strong results, and pre-owned aircraft were in demand, driving up transactions and prices while driving down inventory. Economic growth and continued demand place the business aviation sector on a strong footing to continue success in 2022. A strong economy supported buyers of business aircraft.
- Despite concerns related to supply chain disruptions, continued COVID-19 outbreaks, and inflation, the global economy grew at a strong pace.
- Furthermore, the entry of new customers into the market drove business jet flight operations to increase substantially compared to the same period in 2020 and 2019.
- OEMs reported another strong quarter for their order books, driving up backlogs. And with a 29 percent increase in 2021 compared to 2020, the value of pre-owned transactions drove the overall business jet transaction market, which grew 14 percent compared to the same period in 2020.
- With strong pre-owned demand, inventory levels continued to decline and remained at historic lows.
- Limited supply and continued demand have given business jet sellers additional bargaining power, resulting in broad-based strength in bluebook values.
