Recent reports indicate a bit of an upswing, both in the market for private jets and in private jet operations. Quoting JP Morgan's monthly business jet report, AIN Alerts indicates that the pre-owned jet inventory of in-production models fell to 11.9 percent in June--the first time it has dipped below 12 percent since October 2008. This dip was due to mainly to tightening of midsize aircraft inventory, while the supply of light jets increased slightly. Pre-owned aircraft pricing inched up by a half percent last month, but only due to a firming up in the large-cabin jet segment. Prices for light and midsize jets decreased by around 2 percent.
JP Morgan reported that business jet flight operations in May grew year-over-year by 12.5 percent. Although this increase was less than the year-over-year increases in March and April, it nevertheless continues a positive trend. Nevertheless, ARGUS reported only a 4 percent year-over-year increase in business aircraft flights in June. Fractional flying led the way with a 6.7 percent increase. Mid-size jet charters increased by a whopping 18.9 percent and flights utilizing fractional turboprop flights, mainly Avatar, were up a solid 15.6 percent.
All in all, it appears that the good news continues to outshine the bad, although the industry recovery remains painfully slow. The growth in charter flights and fractional turboprop operations would seem to indicate that flyers are approaching the market gingerly and looking very hard at flying costs. That's just as I'd expect.
