Data from Jetcraft shows that wealthy younger buyers are playing a significant role in the expansion of the private jet industry, indicating that not all Millennials care about their carbon footprint. Olivia Palamountain reports
Jetcraft, a leader in pre-owned business aircraft sales, acquisitions and trades, has revealed that nearly a quarter (24 per cent) of Jetcraft’s pre-owned jet buyers in Europe are aged between 25 and 45, with this figure rising to 38 per cent in the Middle East and Africa.
And that’s not all. The number of Millennial Jetcraft clients has risen by 20 per cent in the last five years, with these buyers also driving a trend towards larger aircraft spends. The average transaction purchase price is now hitting US$25 million – that’s 31 per cent higher than their over 45 counterparts.
Jahid Fazal-Karim, owner of Jetcraft, says: “We are now entering a post-pandemic business cycle from a new, higher starting point, with a predicted steady upward trajectory fuelled by more and younger first-time buyers entering the market, alongside strong demand for larger jets and a growing ultra-high net-worth population.”
The Jetcraft study has also identified international growth areas for the sector. Asia-Pacific’s UHNW population is set to increase by 33 per cent over the next five years, suggesting significant potential for pre-owned large jet transactions in the region.
Chad Anderson, CEO of Jetcraft, says: “Our data shows the profile of a typical pre-owned jet buyer has shifted internationally in recent years. This younger buyer persona offers real lifetime value to our industry, while the predicted growth of the UHNWI population also underlines the potential for the future of the sector.”
Last year was a record year for business aviation, with an annual total pre-owned transaction value of US$14.5 billion, a near 40 per cent increase on 2020, principally driven by large and mid-size jet purchases.
Anderson says: “After stabilizing in the wake of a post-pandemic surge, pre-owned transactions are expected to maintain their new higher base and growth rates, reaching 10,921 transactions valued at US$66.6 billion over the next five years.”