Jets: Reaching the Service Ceiling

The jet market softened after a period of COVID-induced thrust.

Fred George

Saturday, February 03, 2024 at 08:00 AM ET

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Demand for Cirrus' single-engine SF50 Vision Jet remains strong. [Courtesy: Cirrus Aircraft]

Key Takeaways:

The business jet market is leveling off to a more normal growth trajectory after a post-COVID boom, primarily due to persistent supply chain disruptions and FAA certification delays, rather than rising interest rates.
Competition remains intense across all jet categories, with strong demand for specific models like the Cirrus Vision Jet and Embraer Phenom 300E, often driven by a combination of performance, value, and strong product support.
The industry faces growing pressure from European climate activists and potential regulations, leading to a commitment to reduce emissions and a strong push for Sustainable Aviation Fuel (SAF), despite significant challenges in scaling production and high costs.

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The business jet market, paralleling the flight path of the general economy, is leveling off after two years of post-COVID soaring. The flattening is more pause than plateau, says Rolland Vincent, head of the market research and consultant company bearing his name in Plano, Texas.

“Nothing surprises me,” says Vincent. “We were on a sugar high in 2021 and 2022, fed by essentially free money. Now with middle single-digit loan rates, we’re getting back to a more normal market.”