The cost to charter a private jet in the United States has been dropping, across all cabin classes, since the peak levels in mid-2022. SherpaReport looked at data from charter marketplace provider Avinode, to assess the impacts on various cabin sizes.
Avinode provides sourcing and booking platforms that connect charter brokers and aircraft operators across the globe. Their platform is one of the leading marketplaces in the private aviation industry.
The hourly rates for light jets peaked in the summer of 2022 and have been falling since then, and are now down about 5% from this peak as shown in the graph below.
The graph is an “hourly quote price index”, with a base of 100 back on 1st January 2018. So current hourly rates for light jets are about 24% above the rates back at the start of 2018.
The charter prices for mid-size jets have followed a similar pattern to light jets, with peak hourly pricing in the summer of 2022, followed by a subsequent downward trend. The fall has been more pronounced for mids, with hourly rates now about 10% lower than their summer 2022 peak.
Mid-size hourly rates are about 27% above the index base from 1st January 2018 and while down from the peak in mid-2022, are still up about 3% from 1st January 2022.
The hourly pricing rates for super-mid size jets are following a more nuanced pattern. They rose significantly in the summer of 2022, then dropped off, but hit new peaks around Thanksgiving and Christmas last year. They have been dropping since then and are now off about 9% from those highs.
Looking further back they are up about 29% from the index base of 1st January 2018, over 5 years ago.
The hourly rates for large cabin (which for Avinode includes ultra-long rage jets), is following a somewhat different trend. The peak rates were around New Year 2023, and are currently down about 8%. They are still up about 9% from the start of 2022 and up about 24% from the base at the start of 2018.
Harry Clarke, Head of Insights and Analytics, Avinode Group told SherpaReport “The smaller cabins all show a similar trend. Hourly rates increased rapidly in the first half of 2022, reaching a peak that summer. Aside from some peaks around Thanksgiving and Christmas, rates have been broadly decreasing since then. Light Jets rates appear to have stabilized in 2023 whilst Midsize continue to decrease.
In the larger cabins, rates also rose significantly in H1 2022, but then rose again around significant events in the second half of 2022. Super Midsize rates look to be declining, whilst the large cabin aircraft are holding steady, significantly above where they started in early 2022.”
Overall flight stats are showing lower demand for charter flights in the US market, and this is clearly impacting the charter rates.