Sales of Private Jets Decline: Situation May Be Affected by the US Presidential Election

The number of sales of oiled private jets has fallen by around 11% year-on-year, while oiled jet and turboprop aircraft are becoming more available on the market.

The market for oiled private jets is currently experiencing a general slowdown. The reduction in sales is particularly noticeable when compared to its recent historical peak from 2021 to mid-2022.

"In the first three months of 2024, we observed that the market has continued its correction, or rebalancing, with fewer transactions of oiled private jets than in the same quarter during the previous two years. The year-on-year decline in transactions is 11%," says Marian Jan?arik, director of JETRON, a company specializing in private aviation consultancy.

This decline can be attributed to the easing of pandemic measures, which had previously boosted aircraft purchases in 2021, as well as higher interest rates and the overall geopolitical situation affected by ongoing conflicts.

The Number of Aircraft for Sale is on the Rise

As a result of the decline in sales, the number of available oiled aircraft has steadily increased each quarter from historically low levels two years ago. The availability of jet and turboprop aircraft is increasing, which is good news for those planning to buy an oiled private jet.

However, this does not apply to all models. Despite the decline in transactions, it is almost impossible to buy certain types of aircraft on the private jet market. These are mainly models with late production numbers, low mileage, and a clean, transparent history.

The significant reduction in the number of transactions of oiled aircraft has also been reflected in the decline in the fair market value of the available oiled aircraft. Their value is decreasing more significantly than in recent years. This is particularly true for older vintages with higher mileage.

These older generations of private jets experienced a boom during the Covid-19 pandemic (which, in some cases, miraculously "brought them back to life"), but are now declining in their valuations more significantly than other models.

The Reason for Optimism is the U.S.

As transactions have fallen, the mood of private jet owners or operators has naturally declined. However, they still have reason for optimism, as this is an election year in the US. The United States accounts for almost 60% of the private jet population, so the situation in this country is crucial for the private jet market.

"From our perspective, the upcoming US presidential election may have a more significant impact on overall buyer sentiment than we might admit. The outcome of the election may affect international trade, tariffs, and domestic inflation in the US," explains Marian Jan?arik of JETRON.