There has been quite a bit of media coverage about how the private jet industry is growing, and now there are actually fact and figures to prove it. In a recent report submitted to the industry by Aviation International News, several statistics collated for 2017 in comparison to 2016 show a significant increase in most aspects of business aviation and private jet hire. The leading players in the industry will do well to react to these statistics and tailor their investments and business strategies accordingly.
Here are 4 private jet industry statistics that industry leaders should know.
There Has Been a 10% Increase in Charter Flights Over a Period of One Year
The total number of private charter flights booked in the US in the first half of 2016 was 493,431. This increased by 10% in the first half of 2017 to 543,449. There was also a 12.7% increase in flight hours logged over the same period, from 679,018 to 765,196. Overall, this represented a 3.9% gain in business aviation activity.
More hours were flown in the slowest month of the first half of 2017 (February, at 119,696) than in ANY month in 2016.
More and more people, it seems, are making inquiries about private jet hire and business aviation. The online marketplace for charter flights Avinode broke its own record in June 2017 when it breached the 500,000 trip requests in a month for the first time. This achievement was then eclipsed only one month later when the total number of trip requests taken topped 624,000.
The Overall US Charter Market Fleet Increased by 5.4% Over a Period of One Year
The entire US charter market fleet (based on numbers given by the top 25 US charter fleet operators) stood at 991 at the halfway point of 2016. By the halfway point of 2017, that total fleet volume had risen to 1,045 – an increase of 5.4%.
Total flight activity over the same period jumped from 412,005 hours to 476,988 hours – an increase of 15.8%.
This means that the average private jet from any of the top 25 charter fleets in the US flew 456.5 hours in the first half of 2017, compared in 416.2 in the first half of 2016.
All of the companies interviewed as part of this statistic gathering report reported an increase in charter hours being flown. Executive Jet Management totaled 51,782 charter hours over 137 managed aircraft, an average of 377.97 hours per unit. Solairus Aviation and Jet Linx Aviation also reported around a 20% increase in charter hours between 2016 and 2017, with both these companies increasing their fleet to surpass the 100 mark.
Statistics Show an Increase in Brokerage Options Being Added to Aviation Companies
It has been the tradition in the past for charter operation companies to purely manage their own fleets. Any charter requests they were unable to fill were passed on, on an ‘I’ll scratch your back if you scratch mine’ basis to fellow operators. The trend in recent times has moved into brokerage, and many charter companies have added brokerage sections to their business offerings.
The charter company Priester Aviation is one of the companies to do this, and brokerage now accounts for around 30% of their revenues. The membership program company Wheels Up added their Flight Desk broker arm in spring 2016 and estimated that by the end of 2017 they will have gained $50 million in revenues via this venture alone.
XOJet is another company that has embraced brokerage. By the end of 2017 they were estimating their brokerage side arm would bring in $200 million – their fleet revenue for the same period was estimated to be between $200 and $250 million.
Money Spent on Jet Card Programs Increased by Around 15%
Jet card programs remain popular – even though they now face competition from shared shuttle flights and membership programs – and many companies have provided figures that prove this to be the case.
The Massachusetts-based company Sentient Jet estimated that by the end of 2017 it sold $250 million in jet cards, which represents a growth of 15%.
Due to the popularity of jet cards, an entrepreneur named Doug Gollan has set up a comparison site which allows users to find their best jet cards expressly suitable for their requirements. By the halfway mark of 2017 the site had generated $150,000 in membership fees alone.
For more information on any aspect of the world of business aviation or private jet hire, or to see what we can do for your private aviation company in terms of copywriting, link building, SEO or digital marketing (among many other services) call us here at Offland Media at 1-800-604-5193. Alternatively, you can use the online web form that’s available on our website.