Q1 2024 VICTOR MARKET UPDATE

The private jet charter market is demonstrating resilience amidst global economic uncertainties. Our Q1 update delves into key market trends shaping the trajectory of not only Victor but the entire business aviation industry in 2024.

Business Aviation outlook:

Based on data from WingX, business aviation activity remains robust across most regions, except for Europe, in March 2024. The primary US market, typically busiest during this period, shows slight improvement compared to March last year, which was impacted by the regional banking crisis. However, it still falls short of the peak observed in March 2022, post-Covid.

From March 1st to the 24th, a total of 169,331 business jet sectors departed from US airports, showing a 1% increase over March last year and a substantial 31% increase over March 2019.

Florida emerged as the busiest state this month, with business jet departures surpassing last year’s numbers by 4%, albeit 6% below the levels seen in 2022. However, Georgia witnessed a decline in business jet departures compared to March last year, making it the only state in the top 10 to experience such a drop.

In New York activity rose by 3% compared to last year and surged by 13% compared to 2019. Conversely, departures from Las Vegas have seen a significant year-on-year decrease of 21%, though they remain 19% higher than the comparable figures from 2019.

While the US has seen fluctuating demand, The Middle East has maintained a steady course, with departures from Saudi Arabia increasing by 14%, 5% in Qatar, and 10% in Kuwait. Notably, the United Arab Emirates and Saudi Arabia led the region with 4% and 7% year-on-year increases respectively, indicating their emergence as significant business aviation hubs.

Victor Trends:

Leisure-oriented private jet utilization has seen a notable upswing in the early months of 2024, with increased bookings for models such as the Challenger 350 and Citation XLS. Victor remains committed to providing transparent information to clients, including estimated fuel burn and sustainability considerations, guiding them towards more environmentally friendly options.

Demand for group charters has surged, particularly among large corporations, music groups, and sports teams aiming to avoid disruptions associated with commercial travel. The Group Charter department witnessed a 17% increase in total bookings in Q1, with notable movements to diverse locations such as Bogota, Colombia, Al Ula in Saudi Arabia, and Aurangabad in India.

Sustainable Aviation Fuel Developments:

There has been a significant uptick in Sustainable Aviation Fuel (SAF) bookings in Q1, with double the amount compared to November 2023. Victor’s sustainability initiatives, including the ‘Pay Here, Use There’ model, have garnered positive attention within the industry and the wider media, showcasing the company’s commitment to environmental responsibility.

Shortly after celebrating 400 SAF bookings, our co-CEO Toby Edwards, was welcomed on stage for the first Sustainability Live Net Zero event in London. For this event, we were able to highlight how in many ways, Victor and Neste’s ‘Pay Here, Use There’ model has already paved the way for other businesses in both the private and commercial aviation sectors. It has been especially encouraging, thanks to the voluntary contributions of our clients, to be able to highlight our recent achievements not only at industry events but also in the wider media.

Earlier in the month, Victor co-CEO Toby Edwards was able to highlight the importance of sustainable aviation fuel on Monocle Radio. Meanwhile, Dan Cook, Sales Director at Victor, was able to highlight our initiatives in a piece for the Sunday Times.

Q2 2024 Outlook:

Economists are optimistic about the global economy in 2024, which is expected to positively impact the on-demand jet charter market. With various geo-political factors at play as well as the upcoming elections it is always worth taking these predictions with a pinch of salt.  With that said, if the last three months are anything to go by, we can expect to see a very busy summer season begin to unfold as we head into the second quarter.

For further information or feedback, please contact USsales@flyvictor.com.