Demand for private jets is surging, with Honeywell projecting a record-setting number of new business jet deliveries over the next decade despite ongoing macroeconomic and geopolitical uncertainty.
Honeywell, whose most visible divisions are industrial technologies and aerospace, recently published its 34th annual Global Business Aviation Outlook, which estimated that there will be 8,500 new business jet deliveries worth $283 billion, the highest total in the 34-year history of its aviation outlook, over the next 10 years with an average annual growth rate of 3%.
Heath Patrick, president of Americas aftermarket at Honeywell Aerospace Technologies, credited the combination of recent economic growth, increasing demand for fractional ownership and a steady cadence of new aircraft development and technology upgrades for creating “record levels of demand in business aviation.”
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“Operators are increasing their usage rates and, in turn, manufacturers are continuing to ramp up production to keep pace with growing demand,” Patrick said, adding that the corporation expects these record-setting levels of deliveries and usage to continue over the next decade.
Today, 20% of global operators surveyed in the report said they have at least one aircraft on firm order, up from 17% a year ago.
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One reason in particular that there has been such a surge in purchase activity is due to the return of 100% bonus depreciation following the signing of the One Big Beautiful Bill Act earlier this year. The tax rule allows businesses to immediately write off the full cost of large expenses like an airplane in the year they are put into use rather than slowly over several years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HON | HONEYWELL INTERNATIONAL INC. | 202.96 | -0.21 | -0.10% |
That policy shift quickly made an impact.
Tia Minzoni, CEO of Texas-based Stella Jets, said her company was “flooded” with clients looking to make new purchases after the tax rule was restored, following its gradual phase-down after 2022. The 2017 Tax Cuts and Jobs Act let businesses immediately deduct 100% of the cost of eligible assets – including new and used business aircraft – placed in service after Sept. 27, 2017, and before Jan. 1, 2023.
Minzoni told FOX Business that the company has seen a steady increase in demand for charters throughout the second and third quarters, and expects that demand to continue.
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“Overall, we are seeing a lift across all demand. It’s a good year to be a part of private aviation,” she added.
However, Sanford Michelman, founder of private aviation company FlyHouse, doesn’t think Honeywell’s forecast captures the full picture of how strong demand is.
Michelman said the company believes new deliveries are even higher than projected in the report, “based on the rising demand for charters that we’re seeing.”
Michelman said FlyHouse has a wider lens on charter demand because it intersects with multiple verticals in the category and has access to a deep amount of data to predict market needs.
In the last month alone, Michelman said the company has seen double the demand for its charters.
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