Manufacturers are experiencing soaring backlogs in the third quarter (Q3) of this year, according to Global Jet Capital’s Q3 Market Brief.
Backlogs increased by 38.8% since Q3 2021 to $43.5bn, due to low pre-owned inventory and increased demand.
Global Jet Capital said lead times are now extending well into 2024 for most manufacturers, and even longer in some cases, which will “reinforce the resilience of an already healthy industry”.
Gulfstream had the largest portion of the backlogs, followed by Bombardier, Cessna and then Embraer. Dassault backlogs were not included in Global Jet Capital’s report as they do not publish quarterly results.
Flight operations remained strong, with 947,376 global business jet flights within Q3, making it the second busiest quarter since Q3 2020. Of the flights this quarter, 67.3% took place in the US, a slight drop from the 70.1% share in Q2 this year.
The revenue from both new and pre-owned business jet transactions increased in the first nine months of this year compared with the same time period in 2020 and 2021. Year to date (YTD), 2,148 units have been bought and sold, amounting to $18.9bn, compared with 2,263 units worth $17.2bn in the same period of time last year. That compares with1,609 units worth $13bn in the first three quarters of 2020 (see table below).
The financial solutions firm said inflation, rising interest rates and an increased risk of recession remain challenges to the business aviation industry. But high backlogs and demand from new and returning users have increased its resilience against a future downturn.
Read the full report here.
YTD business jet transactions
|
|
Q3 2020 |
Q3 2021 |
Q3 2022 |
|
New jet units |
299 units |
360 units |
359 units |
|
New jet units total value |
$7bn |
$8.2bn |
$8.5bn |
|
Pre-owned jet units |
1,310 units |
1,903 units |
1,789 units |
|
Pre-owned jet units total value |
$6bn |
$9.1bn |
$10.5bn |
|
Total units |
1,609 units |
2,263 units |
2,148 units |
|
Total value |
$13bn |
$17.2bn |
$18.9bn |
|
Average value per unit |
$8.1m |
$7.6m |
$8.8m |
