The business jet market was strong in 2022. Flight operations improved on a year-over-year basis and manufacturers received a high level of orders. Transactions were down compared to a brisk 2021 but were higher than pre-COVID levels. Aircraft listings increased, although pricing remained stable as overall inventory levels were still low. The biggest question going forward is the health of the global economy, with many economists expecting a recession in 2023. Due to business aviation’s unique value proposition, the business jet market has remained resilient but will likely be tested this year.
- While many economists forecast the global economy to experience a recession in 2023, Q4 2022 data indicates that the contraction may be less severe than originally expected.
- While flight operations dipped slightly in Q4 2022, they remained nearly 18 percent above 2019 levels, demonstrating that the broadening of the business aviation user base has endured.
- OEMs experienced robust demand in 2022, driving up backlogs. Strong deliveries and normalizing order intake during Q4 resulted in lower book-to-bill ratios.
- Pre-owned transaction levels were down in 2022 compared to a red-hot 2021 but were higher than pre-COVID levels.
- Inventory levels increased along with aircraft listings in 2022 but remained well below historical levels.
- With demand strong and supply remaining low, business jet bluebook values increased in Q4, but signs that the market is normalizing began to emerge.
