While commercial airlines are having a slow recovery, private-jet companies are seeing a surge in business from new customers, following the current pandemic. Commercial traffic is running around 15% to 17% of last year’s totals, whilst private flights are running at up to 70% or more of normal traffic, according to industry data.
Prior to the pandemic, private jets were often overlooked due to their carbon footprint. However, a new focus on personal health and safety has meant that usage is forecast to sky rocket. Sure, economic uncertainty will no doubt have an impact on the future of the private jet industry in the near future, but the industry is confident on the long-term prospects for private aviation.
Present trends in the private aviation market are constantly tied with the digitalization of the industry, an increase in aircraft availability and how consumers are shifting the way they relate to this service. Cost-efficiency and safety are now the main drivers, instead of pure luxury and celebrity-esque vibes that were once associated with the industry.
The pandemic is quickly becoming a great growth opportunity for business and the industry overall. At Flightserve, we think it could come back from the pandemic even stronger. In the past, this business was more concerned with flexibility, service, and the exclusive access we afforded to our customers. However, it’s now safety, security and convenience that are becoming ever more crucial.
This has begun to translate into the way people are using the service. Traditionally in the past, the mix has been evenly split between business and personal customers. Now, with the effects inflicted on the corporate world, personal flying is coming back first. Despite this potential obstacle to the future recovery of the private aviation industry, corporate customers have said they fully intend to continue flying privately, and even do more of it in the future!
One of the main drivers of growth is the lower costs that have come as a result of COVID-19. It is estimated that prices for private flights are now up to 50% cheaper than they were in 2019. This has brought private-jet flights closer in line with first-class or business-class prices. In addition, the government suspended the 7.5% excise tax charged for private-jet flights. This has meant that many fliers are loading up on jet cards that they can use for future flights (without having to take them immediately).
Overall, despite the concerns for the global economy, it appears that private aviation industry will rule strong and come back even stronger in the future. Are you looking to skip the queues and fly in the safest way possible?
Get in touch with the team at Flightserve today.