Why private jet travel is enjoying the biggest boom in its history
The increased demand for private jet travel shows no sign of slowing
The private aviation industry is currently going through the biggest transition in history, accelerated by the digitalisation, accessibility, and the exceptional travel conveniences that it offers against the backdrop of a gradual recovery from the health crisis. In many ways, it reflects the fourth industrial revolution, which is more significant, and its ramifications more profound, than in any prior period of human history. The record results could not have been achieved without the efficiency and exceptional ability of the private aviation industry to adapt and notably to remain connected to our customers, continuing to inspire their desire to travel and discover.
The worldwide spread of COVID-19 in early 2020 saw many regular commercial and private flyers decide to forego flying and travelling in general. As a result, April 2020 saw a 96% drop in airline passenger numbers. With a decrease in commercial airline travel trust, many flyers turned to private jets. This has truly transformed our industry.
First class was disappearing from airline cabins even before the pandemic, but the recent events have accelerated its fall from favour. Across the long-haul market, the majority of well-known carriers have been substantially reducing the number of first class seats on board their aircraft for more than a decade. Today, ultra-premium passengers choose to continue flying private, rather than returning to first or business class, due to many reasons.
The attractiveness of private jet travel to many flyers has led to many industry changes. These changes have affected both private jet owners and charter clients. For instance, many have seen private jet owners invest more in greater sanitation efforts and upgraded digital technology. Those in the private aviation industry have also seen more first-time flyers and clients travelling with their pets and children.
As a result, private plane usage has soared. In 2021, there were 3.3 million such flights around the world, the most on record, according to aviation data research firm Wingx.
The recent crisis saw demand for both new and pre-owned jets climb to record levels and we are optimistic about a strong market for private jet sales. Experts predict between 8,400 and 8,500 new business jet deliveries between 2022 and 2031, which amounts to an estimated total value of US$264bn to US$274bn. Within the Middle East, the UAE is leading the boom, with the private jet market in the emirates predicted to grow from about 150 private aircraft currently to 250 by 2025.
Since we have the unique opportunity to introduce more travellers to flying private, the industry will continue to see greater efforts geared toward these potential customers. This new customer base comes from those who used to regularly fly first-class or business class.
In addition to safety — passengers encounter about 700 touchpoints on a commercial flight, compared with only 20 touchpoints on a private flight — private jet industry also focuses on the greater conveniences offered by a growing number of private terminals (FBOs) around the world. Today, some private terminals vastly surpass the service offered by the finest first-class lounges — from privacy and comfort of dedicated lounges to luxurious hospitality, curated art displays, and even the world’s first Louis Vuitton private terminal boutique or exceptional high jewellery showcases. As a result, many travellers choose to spend more time before or after their flight discovering the latest and rarest the luxury industry has to offer.
While commercial flights often need connecting flights to facilitate the needs of thousands of passengers, private aircraft can fly into smaller and more remote airports that commercial airlines cannot access. This allows private aircraft to fly direct routes to a passenger’s destination of choice, be it Courchevel, Mykonos or a remote tropical island. Such convenience appeals to people who regularly fly commercial but want to reduce their need for connecting flights and the risks that come with them.
With the increased demand for socially responsible practices, many traveller’s priorities have shifted to greater social responsibility across other aspects of their lives as well. However, it is important to look into the true environmental impact of our industry. With the entire aviation in the world put together contributing only 2% of the CO2 emissions, what is the share of private aviation? Interestingly, it is only 0.04%.
Nevertheless, we support IATA’s net-zero carbon emission goals for 2050 and see more private jet owners employing sustainable aviation fuel (SAF) to appeal to greater demands for ethical and environmentally responsible products or services.
When compared to fossil jet fuels, experts see SAFs as a clean substitute. Unlike fossil fuels made from petroleum, SAFs come from sustainable sources, like non-fossil CO2, agricultural residues, and waste oils. Since these fuels offer a more environmentally-friendly option than petroleum-based ones, airlines use them to attract customers interested in sustainability and social responsibility. Customers with personal sustainability goals will be much more attracted to taking private jets running on SAFs rather than commercial flights fueled by petroleum.
McKinsey & Company estimated that, before the pandemic, only 10% of people who could afford to fly privately were doing so. Recent research now shows that 79% of UHNWIs would be more inclined to travel by private jet than before. Considering more than half — 53% — of new flyers say they plan to fly privately on a regular basis post-pandemic, it does not look like the private aviation trend will be slowing down soon.
With more flexibility, time efficiency, and a larger possible reach, the demand for business air travel is expected to continue growing this year, and all of us are thrilled to be part of this incredible success story.
