The business jet market has continued its stabilization trend in the third quarter of 2024, following a period of unprecedented demand and operational surges in the post-pandemic era. According to the latest report from Global Jet Capital, the sector is displaying remarkable resilience despite a slight year-over-year decline in flight operations, increased inventory levels, and a moderation in Original Equipment Manufacturer (OEM) order intake.

Q3 2024 Market Overview

Flight Operations Remain Strong

While global business jet flight operations recorded a modest 1.3% decline compared to Q3 2023, they remain significantly above pre-pandemic levels, standing 15% higher than in Q3 2019. This continued demand underscores the industry’s value proposition, emphasizing flexibility, safety, productivity, and passenger comfort. Additionally, quarter-over-quarter operations saw a slight 1% increase from Q2 2024, signaling steady activity in the sector.

OEM Performance and Order Backlogs

OEM revenues surged by 15.3% year-over-year, with order backlogs remaining robust at $45.6 billion. While order intake has slowed from the highs of 2022, it remains 20.4% above Q3 2019 levels, indicating persistent demand for business jets. Despite ongoing supply chain and labor constraints, aircraft deliveries have improved, suggesting a gradual return to production efficiency.

Transaction Volume and Market Liquidity

The market for business jet transactions has stabilized after a downturn in 2023. New aircraft deliveries saw a 5.5% increase in Q3 2024, accompanied by a notable 17.3% rise in dollar volume—primarily driven by the heavy jet segment. However, pre-owned aircraft transactions have been slower due to economic uncertainties and a reluctance among sellers to lower prices from their post-pandemic peaks. Nonetheless, stronger transaction activity over the summer, along with new aircraft certifications, is expected to enhance liquidity moving forward.

Inventory and Aircraft Availability

Since 2022, business jet inventory has been on a gradual rise, reaching 7.8% of the global fleet in Q3 2024. While this remains below historical averages, it marks an increase from post-pandemic lows. Notably, availability remains tight for younger aircraft, with only 5.6% of jets under 12 years old currently listed for sale.

Global Economic Outlook and Market Shifts

Despite global uncertainties—including geopolitical conflicts and regional economic slowdowns—the global economy maintained stability in Q3 2024, with GDP growth steady at 2.7%. As inflation levels moderate, central banks have begun lowering interest rates, with further cuts expected in 2025. This economic environment, coupled with resilient labor markets in key regions, is likely to support continued growth and stability in the business jet sector.

A key transition in the market has been the shift from a strong seller’s market during the pandemic-driven boom to a more balanced landscape in 2024. While aircraft prices have stabilized, newer models have demonstrated less depreciation compared to older aircraft, reflecting a normalization of market dynamics.

A Resilient Market Poised for Continued Growth

Q3 2024 reaffirms the business jet market’s strength and adaptability. Flight operations remain solid, OEMs continue to report healthy backlogs, and transaction activity is showing signs of stabilization after recent volatility. While challenges persist, the sector’s flexibility and resilience position it for sustained growth into the final quarter of 2024 and beyond.

As the industry moves toward a more normalized state, business aviation continues to demonstrate its critical role in global mobility, offering unparalleled efficiency and convenience in an evolving economic landscape.