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 stabilizing after a post-COVID surge, with current growth primarily hindered by persistent global supply chain issues and FAA certification delays, rather than rising interest rates.
Fierce competition exists across jet categories, with specific models like the Cirrus Vision Jet, Cessna Citation M2, and Embraer Phenom 300E demonstrating strong sales and market leadership in their niches due to performance, value, and robust product support.
Growing climate change activism in Europe poses a significant external threat, driving the industry to commit to emissions reductions and sustainable aviation fuel (SAF), despite substantial economic and logistical challenges in scaling SAF production.

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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.”