Private Jet Charter Services Market Size and Share Analysis - Growth Trends and Forecasts (2023-2028)

Private Jet Charter Services Market Size and Share Analysis - Growth Trends and Forecasts (2023-2028)

The Private Jet Charter Services Market was valued at USD 12.97 billion in 2023 and is projected to grow to USD 21.18 billion by 2026, registering a CAGR of 10.30% during the forecast period.

A charter flight is an unscheduled flight that does not follow a regular airline route. A charter flight allows users to rent a complete aircraft and choose departure and arrival times and locations. Unlike scheduled flights, seats can be purchased separately from a charter firm or as a part of a trip package by tour operators. Moreover, with an air charter, a user can rent an all-inclusive aircraft and determine the arrival and departure time at their convenience. The surge in demand for shipment related to oversized cargo through flights and the additional challenges with regard to logistics are fueling the demand for cargo charters.

However, the hike in demand is one of the core components driving the growth of the air charter services market. Elements like last-minute capacity, lack of time, and unprecedented applications have also led to the adoption of air charter. Hence, the air charter services market is expected to witness significant growth during the forecast period.

Furthermore, the growth in interest in aircraft rental and the advent of membership programs in the air charter service industry are expected to provide profitable prospects for the leading players in the air charter services market going forward.

Private Jet Charter Services Market Trends

Mid-Size Jets Segment is Expected to Show Highest Growth During the Forecast Period

The mid-size jets segment will showcase remarkable growth during the forecast period. Mid-size jets typically have a range of four-five hours of flight for up to eight passengers. With a greater range and higher performance than the light Jet, the mid-size jets remain an economical choice in luxury travel for jet charter needs.

Mid-size jets feature larger cabin space as compared to light jets. These jets combine transatlantic capability with the speed and comfort of a wide-body, high-altitude aircraft. Some of the popular and widely used models of mid-size jets are Learjet 75, Phenom 300, Hawker 800XP/900XP, Citation Excel, and others.

Many mid-size jets, such as the Hawker 900XP and the Cessna Citation Excel, can accommodate up to 8-12 passengers comfortably, with configurations that can be customized to meet specific needs. Mid-size private jets are equipped with the latest technology and safety features, ensuring a smooth and secure flight experience. Modern avionics systems, such as the Garmin G5000 and Collins Pro Line Fusion, provide pilots with comprehensive and intuitive flight information, while fly-by-wire controls enhance aircraft stability and responsiveness.

Flexjet, Magellan Jets, NetJets, Nicholas Air, OneFlight, Star Jets, and VistaJet each offer aircraft-specific options with guaranteed availability and fixed rates that cover midsize, including super mid private jets. Super mid-size jets have gained higher popularity as they are mostly selected due to many of the perks of a Heavy Jet, but not the added price. With intra-continental capabilities, an entire group can fly comfortably for 5-8 hours without refueling. These jets can have a fully equipped galley and oversized restroom and offer larger baggage capacity. Such benefits will continue to attract more customers to opt for mid-size jets for charter flights.

North America Will Dominate the Market During the Forecast Period

North America holds the highest shares in the market and continues its domination during the forecast period. Factors such as the presence of many HNWIs, increasing demand for newer generation aircraft, and the evolution of new aircraft ownership models have propelled the business prospects of the market players in the US.

According to the Global Wealth Report conducted by Credit Suisse, as of the end of 2020, there were 21,951,000 millionaires in the United States, and it is expected to grow by 28% to 28,055,000 by 2025. According to Forbes, the number of United States billionaires rose from 614 in 2020 to 724 in 2021. Thus, the demand for private jet charter services will be driven by the presence of millionaires and billionaires in the country.

XO Global LLC, a leading charter service provider based in the United States, deploys turnkey solutions to offer an asset-light alternative to full jet ownership and the rigid, non-refundable jet card and fractional jet ownership models. The company operates a fleet of 116 owned aircraft and 1,500 partner operator aircraft to provide a distinguished level of service even while booking single seats on shared flights. In April 2022, Wheels Up, the leading brand in private aviation in the United States, announced that it officially closed its acquisition of Air Partner plc, a UK-based global aviation services group with operations in 18 locations and four continents.

Such developments are envisioned to drive the business prospects of the players in the North American charter jet services market in the upcoming period.

Private Jet Charter Services Industry Overview

The private jet charter services market is fragmented, with several global and local players holding significant shares in the market. Some of the key players in the market are Air Charter Service Group Limited, Thai Airways International Public Company Ltd. (Thai), NetJets IP LLC, Xojet Aviation, and Gama Aviation PLC. To provide a personalized experience, aircraft charter operators are leveraging state-of-the-art innovative solutions to provide a complete suite of flight offerings from fixed-price charters to customized membership programs. Charter operators are trying to attract customers by launching different schemes that enhance convenience, dependability, and efficiency. For instance, in October 2022, Gama Aviation's joint venture with Bond Helicopters received its first contract to support the offshore operations of an international oil & gas firm. The contract will support offshore operations in the southern North Sea for a five-year period commencing January 2024. Under the contract, the venture will supply, operate, and maintain five helicopters to support the transportation of personnel and equipment to and from offshore installations.

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