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Oct 16 (Reuters) – Honeywell International Inc ( HON.O ) raised its outlook for business jet supplies on Sunday, as the COVID-19 pandemic brought a wave of first-time users and buyers into the private jet market.
Honeywell forecasts up to 8,500 new business jets worth $274 billion from 2023 to 2032, up 15% from last year’s outlook, with usage rising 9% by 2022.
During the pandemic, demand for private flights increased as affluent travelers opted for charter planes.
Passengers who used to travel in first class on commercial airlines are now increasingly switching to private flights. According to Honeywell research, nearly 74% of new users expect to maintain the same level of flight in 2023 as they did in 2022.
Business turboprops and small cabin jets each account for 35% of the fleet carrying these new users, followed by midsize jets and large long-haul aircraft, the company cited in the survey.
Demand for new commercial aircraft is as high as we’ve seen it since 2015, and we expect strong demand and spending on new aircraft for years to come, said Heath Well Aerospace, president of American Postmarket.
The survey compared operators’ new jet procurement plans to 2019 levels, benefiting major players in the commercial aircraft market such as Airbus SE ( AIR.PA ), Boeing Co ( BA.N ), Bombardier Inc ( BBDb.TO ) and General Dynamics. Corporation (GDN)
In August, Bombardier CEO Eric Mattel pointed to a serious trend in the airline operating business, as not all customers own jets.
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Reporting by Aishwarya Nair in Bengaluru; Edited by Maju Samuel
Our standards: The Thomson Reuters Trust Principles.
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