The market for second-hand private jets has seen a significant surge in prices, with used aircraft often selling for more than new models, according to industry experts. This trend is driven by heightened demand, limited supply, and manufacturing delays that have created a backlog in new orders.
Industry specialists point to a shift in the types of buyers fueling this boom. Rather than the traditional purchasers of private jets, a growing number of newcomers—particularly individuals who have rapidly accumulated wealth in technology and communications sectors—are entering the market. Aviation finance expert Barbara Pansadora noted that for many of these buyers, owning a private jet is viewed less as a luxury and more as a business necessity. The long wait times for new jets, which can span three to four years due to production delays related to the COVID-19 pandemic and workforce shortages, have made the second-hand market particularly attractive.
As a result, relatively new jets produced in the last one or two years are commanding prices that exceed those of brand-new aircraft. This trend has encouraged some buyers to engage in "flipping," purchasing brand-new planes and selling them shortly after delivery for substantial profits. Mike Francis, head of aviation finance at Citi, highlighted that sellers are capitalizing on this environment to negotiate strong deals, sometimes earning millions of dollars with minimal effort.
Private jet pricing remains highly variable, influenced by the model and size of the aircraft. Top-tier jets such as the Gulfstream G500, G650, and G800 can exceed £50 million in value. Transactions typically occur through private negotiations rather than public listings, reflecting the discreet nature of the market.
Several factors contribute to the robust demand for private jets. The rise in ultra-high-net-worth individuals, amplified by the growth of the artificial intelligence sector, plays a significant role. Additionally, some large corporations, including Morgan Stanley, have relaxed corporate travel policies for senior employees, increasing usage. Tax incentives in the United States further stimulate purchases by allowing buyers to deduct the full cost of a jet in the year it enters service, instead of amortizing it over several years.
Globally, the United States holds the largest private jet fleet, accounting for roughly two-thirds of all registered aircraft. The United Kingdom ranks sixth, with government data indicating just over 500 registered private jets. The current market dynamics underscore a significant reshaping of private aviation, driven by both economic and structural factors.