Average monthly business aircraft utilization reached 27.97 flight hours during the first three months of the year, marking the highest average level in any first quarter since 2008, according to maintenance support provider Jet Support Service Inc. (JSSI).

JSSI's first-quarter 2018 Business Aviation Index, released May 1, found that business aviation average flight hours were up 2.9 percent year-over-year. The index tracks utilization of 2,000 business jets, turboprops, and helicopters worldwide, reporting average flight hours flown on a monthly basis by region, industry, and cabin type.

“The end of 2017 saw the highest flight hour activity since the peaks of 2008. While the first three months of the year often sees a material drop in flight hours, this first quarter dropped by only 0.3 percent,” said JSSI president and CEO Neil Book. “This strong start to 2018 is a positive sign and indicator for global markets.”

According to JSSI, the aviation sector led the growth, with an 8.4 percent increase in flight activity. Healthcare similarly helped drive this growth, with an increase of 8.3 percent, followed by the power and energy sector at 7.3 percent. The consumer goods sector, however, saw an 8.3 percent decline in business aviation activity, and the manufacturing sector reported a 10.4 percent decrease.

Average flight hours were up 12.3 percent year-over-year in Europe and 8.2 percent in South America. However, activity slid 5.4 percent year-over-year in the Asia-Pacific region and 11.7 percent in the Middle East. Average North American flight hours also softened by 1.8 percent year over year.

The National Aircraft Resale Association (NARA) said the recently enacted U.S. tax law—which allows 100 percent bonus depreciation for new and preowned aircraft and lowers corporate taxes and effective pass-through rates—will help the business aviation industry turn the corner this year. Bonus depreciation allows for an immediate tax deduction of the cost of any business aircraft—meaning one used predominantly for business purposes—acquired and placed in service by Jan. 1, 2027.

“Our NARA-certified brokers have recognized a change in the marketplace just in the first few months of 2018 since the U.S. tax reform was enacted,” said NARA chairman Brian Proctor. “The market is generating more activity and demand, and that is likely to increase as the economy continues to heat up, interest rates rise, and most indicators point to a general economic upturn.”

While political and economic developments around the world can influence the market, “Now is a great time to buy an aircraft before prices increase,” he continued. Proctor noted that preowned aircraft in excellent condition are selling at a faster pace than in past years.

Business aircraft flying in the U.S. and Canada continued its upward trajectory last month, with activity up 3.5 percent year-over-year, according to TraqPak data released today by Argus International. That was slightly below the 3.8 percent gain the business aviation services company predicted for February; this month, it is expecting a 4.2 percent rise.

By operator category, Part 135 flying once again led the pack, rising 8.8 percent year-over-year, while Part 91 reported a 0.7 percent gain. Fractional activity dipped into the red, falling 0.6 percent from a year ago.

All aircraft categories saw increases last month, with large-cabin jets coming out on top with a 7.1-percent year-over-year uptick. This was followed by midsize jets, up 3.6 percent; turboprops, 2.5 percent; and light jets, 2.3 percent.

The only double-digit gain in individual categories last month belonged to Part 135 large-cabin jets, which rose 14.5 percent from a year ago. Fractional turboprops and large-cabin jets saw double-digit decreases, falling 10.5 percent and 12.6 percent, respectively.

Activity has steadily increased over the past three Februarys, climbing from approximately 212,000 flights in January 2015 to 237,000 last month, according to Argus. Weekday flying was up 3.2 percent from a year ago, while weekend activity rose 2.6 percent.