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Private jets for sale – $48.8 billion in used private jet sales forecast

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Transactions of used private jets for sale are expected to rebound in 2021 after dipping due to COVID-19

Pre-owned private jet sales will dip to 1,617 units this year as the industry struggles with the challenges of the impact of COVID-19 on the selling process. Last year, there were 1,839 transactions of pre-owned aircraft, according to an annual market survey by Jetcraft.

Year-over-year private jet sales forecast slips

Overall, the aircraft broker estimates 10,183 used private jet deals worth $48.8 billion in revenues from 2020 through 2024. It’s a notable dip from last year when Jetcraft forecast 11,765 transactions valued at $61 billion over the 2019 to 2003 timespan.

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Sales of light jets are expected to drop the most this year, from 1,078 to 946 units, a loss of 12%. On a percentage basis, sales of large-cabin private jets are set to drop 28% from 331 to 238. They are expected to bounce back to 321 units sold in 2021. Airline size private jet sales are set to drop to 13 from 16 this year, however, used midsize private jet sales are expected to actually increase this year from 414 to 420.

According to the researchers, the sale price of used private jets has already rebounded from its nadir. The report forecasts, “Future industry growth is solidified by the predicted stability of international trade volume, worldwide UHNWI population growth, and new platforms to enhance business aviation accessibility.” Ultra-High Net Worth households are expected to grow by 5% annually over the period.

Young UHNWs and billionaires are powering sales of large private jets

Looking at VIP airliners, Jetcraft predicts 16 transactions in 2021, 17 in 2022, and 18 in 2023 and 2024. The sale of pre-owned large private jets will rise to 321 next year, rise to 385 in 2022, 399 in 2023, and increase to 436 units in 2024. Midsize used jets will spike to 496 in 2021 and continue an upward climb to 529 units in 2022, 549 in 2023, declining slightly to 545 in 2024. Light jets will also see a significant pick-up next year with 1,150 expected transactions, 1,186 in 2022, 1,229 in 2023, and 1,272 in 2024.

Used Private Jet Sales in Units (2019 to 2024)

Private Jet Size – Units 2019 2020 2021 2022 2023 2024
VIP airliner 16 13 16 17 18 18
Large private jet 331 238 321 385 399 436
Midsize private jet 414 420 496 529 549 545
Light private jet 1,078 946 1,150 1,186 1,229 1,272
Total Units 1,839 1,617 1,983 2,117 2,195 2,271
Source: Jetcraft; 2019 is actual, 2020 to 2024 is forecast

In terms of revenues, large cabin private jets are set to increase the most, from an expected $3.2 billion in transaction value this year to $5.6 billion in 2024. However, the large jets also saw the biggest drop, falling from $4.7 billion in sales in 2019. Sales of midsize jets are expected to increase from $2.1 billion in 2020 to $2.7 billion in 2024. Light jet used sales are set to move from $1.9 billion this year to $2.4 billion in the 5-year horizon.

Used Private Jet Sales in USD Revenues (2019 to 2024)

Private Jet Size – USD in Billions 2019 2020 2021 2022 2023 2024
VIP airliner $0.4B $0.3B $0.4B $0.4B $0.4B $0.4B
Large private jet $4.7B $3.2B $4.2B $5.0B $5.2B $5.6B
Midsize private jet $2.4B $2.1B $2.5B $2.6B $2.7B $2.7B
Light private jet $2.3B $1.9B $2.2B $2.3B $2.3B $2.4B
Total Transaction Value $9.8B $7.5B $9.3B $10.3B $10.6B $11.1B
Source: Jetcraft; 2019 is actual, 2020 to 2024 is forecast

Of the over 60 pre-owned aircraft currently listed for sale on the Jetcraft website, there’s a 2015 Boeing 787-9 with just 16.5 flight hours and six total landings.

The oldest aircraft listed is a 2001 Gulfstream G100 with 4,855 hours. The newest aircraft is a 2020 Bombardier Global 7500 delivered just this past quarter. It’s in a 14 passenger configuration, including a bedroom. If you are looking for something a bit smaller, there’s a 2019 Learjet 75 with just 136 hours.

New private jet deliveries

According to the General Aviation Manufacturers Association, new business jets’ shipments dropped from 516 to 378 for the first three quarters of 2020 compared to the same period last year.

Honeywell’s annual Global Business Aviation Outlook calls for new private jet deliveries up 13% in 2021 from a COVID-impacted 2020. It forecasts up to 7,300 new business jet deliveries worth $235 billion from 2021 to 2030, down 4% in deliveries from the same 10-year forecast a year ago. There was a less than 1% decline in respondents’ five-year purchase plans, which included over 1,050 nonfractional business jet operators worldwide.

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The post Private jets for sale – $48.8 billion in used private jet sales forecast appeared first on Private Jet Card Comparisons – Know Before You Buy.

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