- thirty first annual Global Business Aviation Outlook initiatives 8,500 new business jet deliveries valued at $274 billion over the following decade.
- Projected business jet deliveries, expenditures over the following decade surge 15% from final yr’s survey.
- Business jet utilization in 2022 is predicted to be 9% greater than a yr in the past.
- Operators report far better curiosity in lowering their carbon footprints.
ORLANDO, Fla., Oct. 16, 2022 /PRNewswire/ — Honeywell’s (NASDAQ: HON) thirty first annual Global Business Aviation Outlook forecasts as much as 8,500 new business jet deliveries value $274 billion from 2023 to 2032, which is up 15% in each deliveries and expenditures from the identical 10-year forecast a yr in the past. This yr, surveyed operators reported new jet buy plans on par with 2019 ranges, with fleet addition charges doubling from final yr’s reported intentions. Respondents’ suggestions on this yr’s survey aligns with business studies of sold-out business jet manufacturing traces for the following a number of years.
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“The business aviation industry is greatly benefitting from a wave of first-time users and buyers due in part to changing habits brought on by the COVID-19 pandemic,” stated Honeywell Aerospace President, Americas Aftermarket, Heath Patrick. “The business aviation sector is expected to recover to 2019 delivery and expenditure levels by 2023, which is much sooner than previously anticipated. Demand for new business jets is as high as we’ve seen it since 2015, and we expect high levels of demand and expenditures for new aircraft for several more years.”
Key findings within the 2022 Honeywell Global Business Aviation Outlook embrace:
- New business jet deliveries in 2023 are anticipated to be 17% greater than in 2022. Expenditures are anticipated to be 20% greater.
- Five-year buy plans for brand new business jets are up three share factors in contrast with final yr’s survey; this reaches 2019 ranges and is equal to 17% of the present fleet.
- Fleet additions are up for the second yr in a row, doubling 2021’s price and topping 2% of the fleet.
- New jet deliveries and expenditures over the following decade are projected to develop at a 2% common annual price, in keeping with anticipated worldwide long-term financial progress.
- One-third of these surveyed anticipate to fly extra in 2023 versus 2022; 64% anticipate to fly at the very least the identical quantity, and simply 4% anticipate to fly much less.
- Large, long-range plane lessons are anticipated to account for greater than 70% of all expenditures of latest business jets within the subsequent 5 years.
- Just 2% of surveyed operators plan to eliminate an plane with out substitute, which is half the speed gleaned in 2021.
- Five-year buy plans for used jets stay excessive, totaling 28% of the present fleet and on par with final yr’s outcomes. High demand for used jets will hold pressuring the already low stock of jets obtainable on the market.
New Users of Business and Private Aviation
The business aviation business is benefitting from waves of first-time personal aviation customers and consumers, which is probably going attributed to COVID-19. At instances in 2022, flight exercise met ranges not seen since 2007, which was the busiest yr ever for business aviation. Concerns about publicity to pathogens and the discount of premium class airline companies helped drive current progress in business and personal aviation. The 2022 Honeywell survey sampled first-time business plane homeowners who’ve made their purchases since 2020 and operators who’re capturing first-time personal aviation customers.
- Nearly 74% of surveyed new customers of personal aviation anticipate to maintain the identical degree of flying in 2023 as they did in 2022, which is 10 share factors above the entire fleet common. Only 4% anticipate to fly much less in 2023.
- Nearly 85% of first-time customers function within the Americas.
- Within the Americas, 80% of first-time consumers function in the United States; the remainder largely function in Brazil.
- Business turboprops and small cabin jets every make up 35% of the fleet carrying these new customers, adopted by medium jets (18%) and huge long-range jets.
Sustainability in Business Aviation
Honeywell is dedicated to reaching carbon neutrality by 2035 in its operations and amenities and to driving aviation sustainability with a variety of ready-now options that may assist a extra sustainable future for the sector. This yr’s survey includes a devoted part on operators’ present and future plans to cut back their carbon footprint throughout operations.
- Half of this yr’s surveyed operators report at the moment implementing at the very least one technique to cut back their carbon footprint, which is 30 share factors above final yr’s survey.
- The most continuously talked about present technique to cut back carbon footprint is “fewer or slower private jet trips” (20%), adopted by “increasing passenger capacity” (17%).
- Sustainable aviation gas (SAF) is the third-most talked about present technique to cut back carbon footprint (14%); nevertheless, operators cite challenges with SAF availability.
- More than 60% of operators plan to both undertake or improve strategies for extra environmentally pleasant operations sooner or later, and 37% cite SAF as the commonest technique to obtain this objective.
- The survey requested the remaining 40% what would compel them to undertake any strategies to handle sustainability sooner or later, and 57% of those operators cited financial incentives corresponding to tax advantages or working value financial savings.
Making an Impact on Business Decisions
The Global Business Aviation Outlook displays present operator issues and identifies longer-cycle tendencies that Honeywell makes use of in its personal product determination course of. The survey has helped establish alternatives for investments in sustainability options, has expanded propulsion choices, revolutionary security merchandise, companies and upgrades and has enhanced plane connectivity choices. The survey informs Honeywell’s business pursuit technique and helps constantly place the corporate on high-value platforms in progress sectors.
Methodology
Honeywell’s forecast methodology relies on a number of sources, together with macroeconomic analyses, authentic tools producers’ manufacturing and growth plans shared with the corporate, and knowledgeable deliberations from aerospace business leaders. Honeywell additionally makes use of info gathered from interviews performed through the forecasting cycle with 152 nonfractional business jet operators worldwide. The survey pattern is consultant of the complete business when it comes to geography, operation and fleet composition. This complete strategy supplies Honeywell with distinctive insights into operator sentiments, preferences and issues and supplies appreciable perception into product growth wants and alternatives.
About Honeywell
Honeywell Aerospace services are discovered on nearly each business, protection and house plane. The Aerospace business unit builds plane engines, cockpit and cabin electronics, wi-fi connectivity methods, mechanical elements and extra. Its {hardware} and software program options create extra fuel-efficient plane, extra direct and on-time flights and safer skies and airports. For extra info, go to www.honeywell.com or observe us at @Honeywell_Aero.
Honeywell (www.honeywell.com) is a Fortune 100 know-how firm that delivers business particular options that embrace aerospace services; management applied sciences for buildings and business; and efficiency supplies globally. Our applied sciences assist plane, buildings, manufacturing vegetation, provide chains and staff develop into extra related to make our world smarter, safer and extra sustainable. For extra information and data on Honeywell, please go to www.honeywell.com/newsroom.
This launch incorporates sure statements which may be deemed “forward-looking statements” throughout the that means of Section 21E of the Securities Exchange Act of 1934. All statements, aside from statements of historic truth, that handle actions, occasions or developments that we or our administration intends, expects, initiatives, believes or anticipates will or could happen sooner or later are forward-looking statements. Such statements are based mostly upon sure assumptions and assessments made by our administration in gentle of their expertise and their notion of historic tendencies, present financial and business situations, anticipated future developments and different components they imagine to be applicable. The forward-looking statements included on this launch are additionally topic to quite a lot of materials dangers and uncertainties, together with however not restricted to financial, aggressive, governmental and technological components affecting our operations, markets, merchandise, companies and costs. Such forward-looking statements will not be ensures of future efficiency, and precise outcomes, developments and business selections could differ from these envisaged by such forward-looking statements. We establish the principal dangers and uncertainties that have an effect on our efficiency in our Form 10-Ok and different filings with the Securities and Exchange Commission.
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