Young buyers are among the main drivers behind the private aviation boom as jet owners under 45 have increased by 20 per cent in the last five years.
Data from private jet brokers Jetcraft showed that in Europe 24 per cent of pre-owned jet buyers are younger than 45, with numbers increasing to 38 per cent in the Middle East.
Younger people are also buying larger and more expensive aircraft, as the average transaction price is $25m – 31 per cent higher if compared with purchases made by older people.
“We are now entering a post-pandemic business cycle from a new, higher starting point, with a predicted steady upward trajectory fuelled by more and younger first-time buyers entering the market, alongside strong demand for larger jets and a growing ultra high-net-worth individual (UHNWI) population,” said JetCraft’s owner Jahid Fazal-Karim.
According to research, the number of UHNWI individuals – defined as those with a net worth of at least $30m – will grow in the Asia-Pacific by 33 per cent over the next five years.
“This younger buyer persona offers real lifetime value to our industry, while the predicted growth of the UHNWI population also underlines the potential for the future of the sector,” added chief executive Chad Anderson.
Following a record year – which saw the total value of transactions surpass $14.5bn – the private aviation industry will continue to stabilise, going down to the $13.5bn threshold per year by 2026.
“After stabilising in the wake of a post-pandemic surge, pre-owned transactions are expected to maintain their new higher base and growth rates, reaching 10,921 transactions valued at $66.6B over the next five years,” Anderson added.