Business Jet Survey: Rises to New High; Recovery Seen Sustaining

Our business jet survey is designed to capture timely insights on business jet market conditions directly from industry professionals.

Indicator at 69: our Barclays business jet indicator (bbji), which reflects .100 responses, came in at 69 in august, representing an increase from our prior survey in June at 67 and a new high, indicative of accelerating business jet market improvement. By cabin class, our bbji was led by midsize cabin at 72 and small cabin at 71 with large cabin at 63. Our straight-up measure of overall business conditions came in at 6.6 (0- 10 scale), slightly lower from our prior survey.

Most see recovery sustaining: 64% of respondents believe the recent improvement in market activity is sustainable while only 36% view it as a short-term bounce. Commentary from industry professionals (pages 10-12) indicate a “seller’s” market characterized by very low levels of available high-quality young used inventory along with higher pricing in certain parts of the market.

Pricing main driver of improvement: all components (customer interest, pricing, 12- month outlook, inventory level, willingness to increase inventory) of our bbji came in well above 50 in august, indicative of sequential improvement. The improvement in our index was mainly driven by a 14$ increase in our pricing score with both our pricing and inventory score hitting new highs.

Positive on Bizjet: after nearly a decade at trough levels, key business jet market indicators now all signal improvement, including much lower young used inventory levels along with improved pricing, increasing flight activity and higher corporate capx. In addition, our survey of industry professionals indicates rapidly improving market conditions. We have overweight ratings on bbd, gd, and txt..