Private jet demand is booming, driven by rising wealth, which is putting a squeeze of the supply of these aircrafts.
Private jet demand is booming — to the extent that companies can't produce them quickly enough and buyers are facing extended wait periods for deliveries."If you look at today compared to 2019, the market has almost exploded," John Schmidt, global aerospace and defense industry lead at consultancy Accenture, told CNBC at the Dubai Air Show.
Public listings by companies in the U.S. have already hit record highs in 2021. Data from Jefferies Equity Research shows that as IPO activity climbed, the volume of business jet deliveries rose in correlation with it. "The addressable market right now for business jets has expanded. The pie has gotten bigger," Friedrich said. "And the result is from continued wealth creation of over 12% when you take a look at the billionaires in the world, but also from what was traditionally Fortune 100 and large private companies.
Private jet charter company VistaJet reported a 29% increase in new members over the past year, with 71% of new requests coming from passengers who did not regularly use private aviation before. A recent report by the European campaign group Transport & Environment found that private jets are 5 to 14 times more polluting per passenger than commercial planes and that in one hour, a single private jet can emit two tons of CO2. The group also found that in Europe alone, CO2 emissions from private jets increased by 31% between 2005 and 2019, outpacing the growth in commercial jet emissions.
That's because sustainable aviation fuels are expensive and difficult to obtain, said Accenture's Schmidt, although there are currently more than 20 locations globally where sustainable aviation fuels can be found. Private jet charter service NetJets in November celebrated a year of using SAF, having flown 2.5 million nautical miles on the cleaner fuel.
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