Unprecedented $280B Forecast in Business Jet Deliveries Over the Next Decade
Business aviation is currently witnessing a remarkable growth. Honeywell forecasts a whopping 8,500 new business jet deliveries worth $280 billion over the next decade, according to the company’s 34th annual Global Business Aviation Outlook released in October 2024. This market momentum is expected to continue through December.
The forecast represents an all-time high in the 34-year history of Honeywell’s aviation outlook. It indicates a stabilized demand that surpasses pre-pandemic levels. New business jet deliveries in 2025 are projected to be 12% higher than in 2024, with expenditures expected to rise by 11%. Large jets are predicted to account for approximately two-thirds of all expenditures on new business jets over the next five years.
Several key drivers are attributed to this growth. One of the major factors includes the restoration of 100% bonus depreciation tax benefits in the United States. This allows businesses to immediately deduct the full cost of eligible aircraft. Private aviation company Stella Jets reported a surge in clients looking to make new purchases following the tax rule restoration.
Despite ongoing supply chain challenges, the market remains robust. Business jet manufacturer backlogs remain strong at over $55 billion, with production ramping up to meet demand. More than 90% of operators surveyed expect to maintain or increase their flight frequency in 2025 compared to 2024. The report suggests that five-year purchase plans for new business jets are equivalent to 18% of the current fleet, consistent with sustained industry growth patterns.
Source: Fox Business