Private jet charter flights reportedly experienced a decline of 15% in the first half of this year compared to their peak in 2022.
The drop in demand can be partly attributed to a waning of the surge in demand caused by the pandemic and to the emergence of a new competitive landscape for high-end travel, CNBC reported Friday (Aug. 16).
The number of private jet charter flights dropped to 610,000 in the first half of this year, down from 645,000 during the same period last year and 716,000 in 2022, the report said, citing data from Argus International.
The decline in demand reflects an ongoing correction in the private aviation sector, per the report. During the pandemic’s peak, there was a surge in new jet card members and charter fliers who opted for private travel for the first time. However, many of these travelers, even ultra-wealthy ones, have now returned to commercial flights.
The decline in private jet charter flights can be traced back to the impact of the pandemic, according to the report. When airports and airlines shut down in 2020, private jets provided an escape and a safer way to travel. Wealthy travelers who had previously been reluctant to fly private due to cost and environmental concerns found a reason to do so. At the same time, government spending, stimulus packages, low interest rates and a booming stock market created wealth that could be used to cover the costs of private travel.
However, demand started to slip in 2023 as some travelers no longer felt they could use COVID as an excuse to fly privately, the report said. The soaring prices of private flights also became a deterrent for many individuals. Prices are now about 20% higher than they were in 2019.
As a result, some fliers have opted to mix commercial and private flights or switch between airlines and private jets depending on their travel needs, per the report.
The report comes at a time when consumers are delaying or cutting back on a variety of forms of travel and experiences. Online booking platforms, airlines, hotels and other companies in the sector noted the trend in recent earnings calls, attributing it to an uncertain economic outlook.
