Business aviation rides the turbulence in USA

Market continues to thrive, in spite of economic uncertainty.

Despite Donald Trump’s insistence that the US economy is on the cusp of a boom, Americans appear less than convinced. High interest rates, stubborn inflation, and soaring fuel prices – the result of the conflict with Iran and, some would say, the President’s erratic tariff policies – are hammering consumer and business confidence.

However, if that is the case, no one appears to have told the stock market – which has been at near record levels partly because of excitement over AI. Or indeed the business aviation sector. After the lift the industry enjoyed during and immediately after the pandemic, demand for private flights and business aircraft, new and used, remains robust.

General Aviation Manufacturers Association (GAMA) data shows both shipments and billings rose in the first six months of 2026, compared with last year, with business jet deliveries up 8.2% to 383 units, and turboprops 7.8% higher at 289 units. While GAMA’s figures cover the global market, about three in five new aircraft go to US buyers.

“The market has been remarkably resilient despite high inflation, higher interest rates and the war, partly because business aviation is not terribly sensitive to high oil prices” says Adam Cowburn, managing director at aviation consultancy Alton. Strong equity markets are driving wealth creation, and “much of that new wealth is gravitating to business aviation”.

Within the buoyant market, two significant trends stand out. Firstly, the inexorable rise of fractional continues, and much of the expansion appears to be as a result of new users rather than cannibalisation of the likes of aircraft ownership or block charter. These too have grown in the past six years, but at a slower pace than fractionals and the market overall.

A second is the continuing strength of the used aircraft market. In recent years, this was due to airframers struggling to ramp up to meet new aircraft demand because of post-Covid skills shortages and supply chain snags. These are still issues, but could the OEMs also be choosing to limit supply to avoid the market overheating as it has repeatedly in the past?

GAMA data shows both shipments and billings rose in the first six months of 2026, compared with last year. Source: Dassault Aviation

One reason fractional demand is growing without seriously impacting other forms of aircraft use is that some companies are using fractional ownership as an alternative to acquiring a second or third aircraft, suggests Cowburn. Honeywell’s most recent Buyers Expectations study shows that up to 20% of corporate aircraft owners also hold fractional shares.

Cowburn suggests that the challenges of operating a corporate flight department sometimes push companies to choose the fractional route. “People sometimes underestimate the complexity of running a non-revenue airline in-house,” he says. “Fractional is turnkey, but you can also up-gauge and down-gauge depending on need.”

The growth of super-midsize types in the fractional fleet may be another factor. The likes of the Textron Aviation Citation Latitude and Embraer Praetor 500 offer larger cabins than traditional aircraft in that segment, while still providing US coast-to-coast capability. Thus they provide an attractive alternative to corporate owners of large-cabin aircraft.

The popularity of fractional ownership even persuaded NetJets – the biggest player in the segment – earlier this year to limit its sales of jet cards and leases to focus on its main revenue stream, for the second time in five years. It previously suspended its programme during the Covid pandemic before resuming it towards the end of 2022.

Gregg Brunson-Pitts, founder of charter broker Advanced Aviation, says NetJets’ decision will provide some “trickle-down” benefits for the charter sector. Advanced Aviation launched its own jet card programme last year, and Brunson-Pitts says such schemes provide many of the benefits of fractional ownership, such as the ability to budget more easily.

While waits for new aircraft have reduced significantly as Covid-disrupted supply chains slowly return to normal, as with the commercial sector, the gap between placing an order and taking delivery is still longer than it was pre-pandemic. This has had two major effects on the used aircraft market.

Demand for pre-owned aircraft – particularly younger examples – remains extremely high. Operators are also holding onto their assets for longer, stimulating aftermarket demand for upgrades of everything from cockpit avionics to in-flight connectivity, a feature these days regarded as a necessity rather than luxury by most users of corporate aircraft.

In its quarter four outlook released on 29 September, dealer-broker SmartJets describes the market as being in “full growth, characterised by high transaction volumes and large manufacturer backlogs”, driven by a “a community of ultra-high-net-worth individuals and corporate flight departments”. It says the long-range segment will see the fastest growth.

“What’s remarkable is that growth is being driven by the pinnacle of the market,” says SmartJets president Ben Shirazi. “That demand for new, long-range business aircraft is high and backlogs are significant. The result is that many buyers are looking at top-tier pre-owned business aircraft as alternatives.”

Forecast demand

The International Aircraft Dealers Association’s latest forecast adopts a similar sentiment. Noting that its accredited dealers closed 746 transactions in the first half of 2026, a 21% increase on the same period last year, it says limited availability of younger, well-equipped aircraft – particularly midsize to large-cabin types – “continues to shape the market”.

“Desirable aircraft with strong pedigree, current maintenance, engine programme coverage, modern avionics, and connectivity are attracting buyers quickly and…commanding premium prices,” it says, with US 100% bonus depreciation rules, wide availability of financing options, and long OEM delivery lead times all “significant demand drivers”.

The past 12 months have seen some significant deals and business moves in the market. Last NBAA-BACE, a new fractional player, Fort Lauderdale-based Bond was confirmed as the company behind a June order for 50 Bombardier Challenger 3500 and Global 6500 jets. The start-up is founded by Bill Papariella, previously behind charter firm Jet Edge.

There was further good news for the Canadian manufacturer earlier this year when business aviation group Vista, a long-time Bombardier customer, placed an order for up to 160 Challenger 3500s – 40 firm commitments and 120 purchase options – with deliveries beginning this year and running over 10 years.

Bombardier completed a trio of major deals at June’s Paris air show when Saudi Arabia’s The Helicopter Company – as its name suggests, until then an exclusive operator of rotorcraft – signed a letter of intent to acquire up to 60 new jets, including firm orders for Challenger 3500s, Global 5500s and Global 8000s.

Another interesting development since the last NBAA-BACE was fractional ownership giant Flexjet’s purchase of high–profile aircraft brokerage The Jet Business, famous for its city centre showroom in London’s Mayfair. Flexjet, owned by Kenn Ricci’s Directional Aviation Capital, has a fleet of more than 340 aircraft and is second in fleet size only to rival Netjets.

Explaining its motive, Flexjet said “further integrating aircraft acquisition and disposition capabilities” would give it “greater strategic control over fleet quality, modernisation and lifecycle planning” and that The Jet Business would “support the acquisition of aircraft entering the Flexjet fleet” as well as providing market intelligence.

Returning to Trump, his sec

Source: www.flightglobal.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.