Private Jet Set COVID Bump Comes Down to Earth

According to a CNBC report, the pandemic-driven bump in private aviation has begun to level off. Compared to a peak in 2022, private jet charter flights dropped 15% over the first half of this year. The report cites “waning demand and a new competitive landscape for high-end travel.”

Notwithstanding a boost from the Summer Olympics that set a record of 713 private jet flights to Paris in the last week of July, data from Argus International showed a steady drop in charter activity for the first half of the past two years. Charter flights dropped from 716,000 in 2022 to 645,000 last year and down to 610,000 this year.

According to CNBC, “The two-year decline highlights the ongoing correction in the world of private aviation, as the surge of new jet card members and charter fliers who started traveling private for the first time during Covid pulls back. Even ultra-wealthy travelers are showing signs of spending fatigue.”

The spike in demand driven by COVID-related travel concerns sparked a flood of activity in the charter industry to meet the needs of customers. But with the time lag associated with acquisition and pilot hiring needed to meet booming demand, those who overleveraged their finances are facing dire consequences.

Doug Gollan, founder and editor of Private Jet Card Comparisons, told CNBC, “The smaller operators with three, four or five jets, they’re the ones hurting.” But even large operators, notably Wheels Up, have faced financial headwinds as demand has waned during this year’s travel season. And higher prices driven by earlier high demand took a toll.

Gollan continued, “Prices are about 20% higher than they were in 2019. A lot of people are saying, ‘I spent $300,000 or $350,000 on flights last year, I’m not going to spend $400,000 or $450,000 this year.’ Even if they have the money, they have a dollar figure in their head they don’t want to go over.”

But some within the industry don’t see the shakeout as all negative. Private aviation is a highly cyclical industry, and wild swings in either direction can be difficult to navigate. Travis Kuhn, Senior VP of Software at Argus, said of the downturn, “The industry is on a more sustainable long-term path. It’s not a bad thing that it’s cooled down a bit.”