Our annual recap surveys a year of seismic shifts in aviation
It’s been a challenging year in the private aviation industry. Charter operators and airframe owners continue to adjust to changes in post-COVID demand. Companies are restructuring and airframes are changing hands. Congress is also considering new regulations.
Through it all, it’s been a privilege to charter our loyal customers across the globe in 2024, from the Super Bowl in Las Vegas to another Christmas season in the Caribbean. We’re excited for what 2025 has in store, and we wish all flyers a safe and prosperous new year.
Here’s a look back at the year in private aviation. Contact our flight coordinators to discuss your travel needs in 2025.
Lower Demand and Lower Pricing
The COVID pandemic caused a historic surge in charter demand that peaked in 2022. Since then, demand has plummeted back towards its historical averages. Both 2023 and 2024 brought double-digit year-over-year declines for charter services. The lessening of demand has put a downward pressure on private jet charter rates, which were lower across the board in 2024 than the previous year.
However, there has been a small uptick in charter pricing for December 2024 and the extended holiday season. Many operators who suffered a year of lower demand and lower pricing are trying to make up for some of those losses during the busiest charter travel time of the year. Even though brokers are shopping a trip with multiple operators, it seems like many operators are holding the line on pricing for this brief window of high demand.
Regulations May Be Changing
The major regulatory news item of the year came this summer, when Congress announced potential changes to Part 380, which regulates “public charters”. As of August, the bill has been introduced in the House and referred to its relevant committees.
Airframes Under New Management
To capitalize on COVID-era charter demand, several new jet buyers purchased airframes in 2020 and 2021 with the hope of generating revenue on a Part 135 certificate. Typically, there’s a three-year commitment period when a management company takes on a new airframe.
This year, many of those jet owners have reached the end of that three-year period. Many found they have been recently unable to generate the revenue they did during COVID. We’re seeing a greater-than-average number of airframes changing management companies in search of updated strategies for their jet’s profitability.
Charter Companies Face Financial Headwinds
Because of the leveling demand, many jet charter companies are facing difficult decisions about their future.
Set Jet was forced to discontinue operations in February after failing to secure new financing. The fractional charter operator Volato — once among the largest charter operators — sold their assets to flyExclusive, who face profitability problems of their own. VistaJet continues to be saddled with questions about their debt holdings.
We expect 2025 will bring more closings and consolidations as the industry continues to refine its business model. Wheels Up, for example, looks to rebound from Delta Airlines-backed bankruptcy rescue with new financing and a fleet overhaul.
A Resilient Year for Global Air Charters
Global Air Charters continues its plan of measured growth in a turbulent industry. “All in all, in the Part 135 industry in 2024, we’ve seen charter rates be depressed, due to a double-digit decline in demand,” says Michael Vanacore-Netz, Global Air Charters CEO. “We’ve seen assets under management change companies due to lessening revenue, and we’ve seen a few companies go out of business.”
“Despite these conditions, we were able to fly more hours this year than we did in 2023,” he continues, “so we’re extremely happy about that.”
Jet Charter Industry 2024 Wrap-Up
We look forward to serving both new and long-time customers in 2025. Contact our flight coordinators to discuss your travel needs.
