Monday, August 12, 2024 The 2024 Paris Olympics has sparked a remarkable surge in business jet arrivals, significantly aiding the recovery of the private travel market following a relatively sluggish first half of the year. The influx of elite athletes, government officials, and corporate executives to France for the global sporting event has been a key driver of this rebound. This summer, Europe has emerged as the bright spot for the business jet market, with the Olympics drawing record numbers of private jet flights to France.
The United Kingdom has also seen an influx of sports fans arriving by private jets, creating what aviation consultancy WingX described as “bumper demand” for private jet travel, according to their report released on August 7. During the week of July 22 to July 28, business jet activity in France surged by 17% compared to the same period last year. Europe as a whole recorded a 4% increase in business jet activity, while the UK posted a 10% jump, according to WingX data.
Paris, in particular, saw a staggering 58% year-on-year increase in business jet arrivals during this week, with Paris Le Bourget airport recording an impressive 713 business jet arrivals over the seven days. The boost in trans-Atlantic business jet activity was also notable, with flights from New York airports to Paris airports jumping 400% year-on-year in the week ending July 28, primarily driven by the Olympics. The global rise in sports tourism is presenting new growth opportunities for private jet travel companies, according to industry reports.
During the first half of 2024, the sports and corporate segments accounted for 50% and 34% of private jet bookings, respectively, with the remaining bookings coming from music clientele and leisure groups. Victor, a leading charter company, has observed a significant increase in the chartering of mid-size, heavy, and ultra-long-range aircraft through its platform. Despite the positive developments in Europe, global business jet activity in the first half of 2024 saw a slight decline, with a 2% year-on-year drop, according to WingX.
From January to June, the global business jet fleet logged 2.98 million flight hours, 2% less than the same period last year. The private jet market experienced a peak during the COVID-19 pandemic as disruptions in commercial flights led first-class and business-class travelers to opt for chartered flights.
Demand for private jets surged in 2021 and 2022 as wealthy travelers sought alternatives to commercial flights to avoid crowds. However, the business jet sales market contracted last year as aircraft manufacturers faced supply chain bottlenecks and labor shortages, and the pre-owned jet market began to normalize from the unusually strong performance seen in 2021, according to Global Jet Capital’s fourth annual business jet market outlook report. Global Jet Capital is a leading provider of financing for the private aircraft market.
Looking ahead, new jet deliveries are projected to increase by 9.4% in 2024 and grow at an average annual rate of 3.2% over the next five years, according to Global Jet Capital.
Deliveries are expected to peak in 2027, followed by a slight dip in 2028 as backlogs stabilize. The outlook for 2024 is optimistic, with DC Aviation Al-Futtaim VIP Terminal, a joint venture between Germany-based DC Aviation GmbH and Dubai-based conglomerate Al-Futtaim, forecasting growth driven by major global events and expansion into emerging markets. The Paris 2024 Olympic Games, which began on July 26, are expected to attract around 11 million travelers from around the world to the French capital.
These sports tourists are known for their significant spending, with 51% of them spending over $500 per trip per person on flights and other expenses, excluding event tickets. The surge in private jet arrivals during the Olympics underscores the growing demand for luxury travel options, particularly in the context of major global sporting events. As sports tourism continues to rise, the private jet market is well-positioned to capitalize on this trend, driving further growth and recovery in the industry.
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