- The 31st Annual Global Business Aviation Outlook expects to deliver 8,500 new business jets valued at $274 billion over the next ten years.
- Business jet deliveries and spending over the next decade are expected to rise 15 percent from last year’s survey.
- Business jet use in 2022 is expected to increase by 9% from a year ago.
- Operators report much greater interest in reducing their carbon footprint.
Orlando, Florida, October 16 January 2022 /PRNewswire/ — Honeywell’s (NASDAQ: HON) 31st Annual Global Business Aviation Outlook Predicts Delivery of Up to 8,500 New Business Jets $274 billion From 2023 to 2032, both deliveries and spending are up 15% from the 10-year forecast a year ago. This year, the operators surveyed reported new jet purchase plans comparable to 2019 levels, with a fleet growth rate that doubled from last year’s reported intentions. Respondents’ feedback in this year’s survey is consistent with industry reports of sold-out business jet lines in the coming years.
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“The business aviation industry is benefiting greatly from a wave of first-time users and buyers due to changing habits brought on by the COVID-19 pandemic,” said Honeywell Aerospace Aftermarket President, Americas. Heath Patrick“The business aviation industry is expected to return to 2019 levels of deliveries and spending by 2023, much faster than previously expected. Demand for new business jets is as high as we have seen since 2015, We expect high demand levels and spending on new aircraft for a few more years.”
Key findings from Honeywell’s 2022 Global Business Aviation Outlook include:
- New business jet deliveries in 2023 are expected to be 17% higher than in 2022. Spending is expected to be 20% higher.
- Five-year purchase plans for new business jets increased by three percentage points compared to last year’s survey; this reached 2019 levels and equals 17% of the current fleet.
- Fleet additions increased for the second year in a row, doubling from 2021 and accounting for more than 2% of the fleet.
- New aircraft deliveries and spending are projected to grow at an average annual rate of 2% over the next decade, in line with projected long-term global economic growth.
- A third of respondents expect to fly more in 2023 than in 2022; 64% expect to fly at least the same amount, and only 4% expect to fly less.
- The large long-range aircraft category is expected to account for more than 70% of all spending on new business jets over the next five years.
- Only 2% of operators surveyed plan to dispose of aircraft without replacement, which is half of the 2021 collection rate.
- The five-year purchase plan for used aircraft remains high, totaling 28% of the existing fleet, unchanged from last year’s results. High demand for used jets will continue to weigh on the already low inventory of jets available for sale.
New users in business and private aviation
The business aviation industry has benefited from a wave of first-time private aviation users and buyers, possibly due to COVID-19. At times in 2022, levels of flying activity have not been seen since 2007, the busiest year ever for business aviation. Concerns about exposure to pathogens and a reduction in premium air services have helped drive recent growth in both business and private aviation. Honeywell’s 2022 survey sampled first-time business jet owners and operators capturing first-time private aviation users since 2020.
- Nearly 74% of new private aviation users surveyed expect to fly at the same level in 2023 as in 2022, which is 10 percentage points higher than the overall fleet average. Only 4% expect fewer flights in 2023.
- Nearly 85% of first-time users operate in the Americas.
- In the Americas, 80% of first-time homebuyers are in U.S.; the rest are mostly in Brazil.
- Business turboprops and small cabin jets each accounted for 35% of the fleet carrying these new users, followed by midsize jets (18%) and large long-range jets.
Sustainability of business aviation
Honeywell is committed to achieving carbon neutrality in its operations and facilities by 2035, and supporting the industry towards a more sustainable future by advancing the sustainable development of the aviation industry through a broad range of off-the-shelf solutions. This year’s survey is dedicated to the current and future plans of operators to reduce their carbon footprint during operations.
- Half of the operators surveyed this year said they currently implement at least one method to reduce their carbon footprint, which is 30 percentage points higher than last year’s survey.
- The most commonly cited method of reducing carbon footprint currently is “reducing or slowing down private jet travel” (20%), followed by “increasing passenger capacity” (17%).
- Sustainable aviation fuel (SAF) is currently the third most cited method to reduce carbon footprint (14%); however, operators cited challenges with SAF availability.
- More than 60% of operators plan to adopt or add greener operating methods in the future, with 37% citing SAF as the most common way to achieve this.
- The survey asked the remaining 40% what factors would force them to take any approach to sustainability in the future, with 57% of operators citing financial incentives such as tax breaks or savings in operating costs.
Influence business decisions
The Global Business Aviation Outlook reflects operators’ current concerns and identifies longer-cycle trends that Honeywell uses in its own product decision-making process. The survey helped identify investment opportunities in sustainable solutions, expanded propulsion products, innovative safety products, services and upgrades, and enhanced aircraft connectivity offerings. The survey informs Honeywell’s business pursuit strategy and helps position the company consistently on high-value platforms in growth areas.
method
Honeywell’s forecast methodology is based on a variety of sources, including macroeconomic analysis, OEM production and development plans shared with the company, and expert deliberation by aerospace industry leaders. Honeywell also used information gathered from interviews with 152 non-selected business jet operators around the world over the forecast period. The survey sample is representative of the entire industry in terms of geography, operations and fleet composition. This comprehensive approach provides Honeywell with unique insights into operator sentiment, preferences and concerns, as well as deep insight into product development needs and opportunities.
About Honeywell
Honeywell aerospace products and services can be found on nearly every commercial, defense and space shuttle. The Aerospace business unit manufactures aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient planes, more direct and on-time flights, and safer skies and airports. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero.
Honeywell (www.honeywell.com) is a Fortune 100 technology company providing industry-specific solutions including aerospace products and services; building and industrial control technologies; and global performance materials. Our technologies help make our world smarter, safer and more sustainable by helping to connect planes, buildings, manufacturing plants, supply chains and workers more closely. For more Honeywell news and information, visit www.honeywell.com/newsroom.
This press release contains certain statements that may be considered “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, relate to forward-looking statements that we or our management of our activities, events or developments intend, anticipate, forecast, believe or expect to occur or may occur in the future. These statements are based on certain assumptions and assessments made by our management based on their experience and their beliefs about historical trends, current economic and industry conditions, expected future developments and other factors they deem appropriate. The forward-looking statements contained in this press release are also subject to a number of significant risks and uncertainties, including, but not limited to, economic, competitive, governmental and technological factors that affect our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements. We have identified key risks and uncertainties that affect our results in our Form 10-K and other filings with the Securities and Exchange Commission.
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