Private Jet Travelers Facing Headwinds

Private jet fliers are headed for stormy weather. For those who deal in those tiers beyond commercial air travel, the skies have become that much more precious. 

The Global Business Jet Market is surging these days, not just in demand but in price. The boom driven in the past few years by growing demand for private travel and bio-bubbles are now facing headwinds in the form of continued challenges from the COVID-19 pandemic, surging crude oil prices globally, and the Russia-Ukraine war as well as supply chain disruptions. bottlenecks in needed materials. 

Private Jet Price Points

An analysis by the buyer’s guide, Private Jet Card Comparisons, of over 250 jet card programs offering fixed or capped hourly rates found that Q1 2022 one-way prices are 21% more than Q4 2020, and that includes a 5% increase since Q4 2021.

“Dozens of fixed/capped rate programs, which before Covid typically raised rates by $100 per year if at all, have increased prices multiple times since last summer. The average jet card charter price increased by $1,799 per hour since the end of 2020. Our analysis shows the rates are still lagging behind dynamic pricing options,” said Doug Gollan, Founder, and Editor-in-Chief of Private Jet Card Comparisons. “It’s a perfect storm of record demand, supply constraints, and rising costs, including pilot salaries, general payroll, fuel, incentives to aircraft owners, maintenance, and parts. Since dynamic pricing reflects the current market, it likely means more price hikes are coming unless there is an event that dramatically impacts demand “

The average one-way hourly jet card charter rate across all aircraft categories broke into five figures in Q1 2022, increasing to $10,204 per hour, up from $8,405 at the end of 2020, a 21% hike. 

Comparing fixed/capped jet card pricing to one-way on-demand charter quotes for 12 different scenarios, in seven instances, the fixed-rate jet cards offered lower prices for a three-week span between the end of April and the middle of May.

Private Flying on Demand

While on-demand charter costs (trips priced on a per-flight basis using market-based dynamic pricing) ranged on average between $24,894 and $41,654 per flight, the fixed/capped rate jet cards (which give members a contracted price when they sign up) averaged just $25,744.

Since the expiration of the CARES Act tax holiday in December 2020, which saved flyers the 7.5% Federal Excise Tax, fixed/capped hourly jet card membership rates for over 250 programs tracked by Private Jet Card Comparisons have increased:

– Light Jets (typically seating six passengers for flights under 2.5 hours) are 35% more expensive, from $5,600 per hour to $7,564 per hour

– Midsize Jets (typically seating seven passengers) are 24% more expensive, from $6,961 per hour to $8,662 per hour

– Super Midsize Jets (typically seating eight passengers with a coast-to-coast range) are 22% more expensive, from $9,190 per hour to $11,171 per hour

– Large Cabin Jets (typically seating 10-to-14 passengers, popular with large groups and families) are 17% more expensive, from $12,109 per hour to $14,173

– Ultra-Long-Haul Jets (typically seating 13 to 16 passengers with intercontinental range) are 16% more expensive, from $15,136 per hour to 17,767

– Turboprops (typically seating 6-to-8 passengers) are 47% more expensive, up from $4,454 per hour to $6,564

While fixed/capped rate jet card pricing may still be a relative bargain compared to booking flights on-demand – trip-by-trip – the jet card programs are becoming more restrictive compared to before the Covid-19 pandemic, Gollan noted.