Air Charter Demand Expected to Climb in July

Demand for charter flights this month is expected to be up from last year but softer than last month, with the July 1 forward-looking demand index generated by online charter portal Avinode standing at 186.80. This was almost 13 points down from June 1, but still 33 points ahead of where it was 12 months earlier. This trend was mirrored fairly closely by Avinode’s price index generated on July 1, which was down marginally on where it was 30 days earlier but still between 3.5 and 5.2 percent ahead year-over-year. Actual charter rates paid in recent months generally showed increases of up to almost 8 percent, with the North American market showing stronger increases than other markets. For example, the average hourly rate for a Cessna Citation Excel in North America stood at $4,378 on July 1–7.9 percent higher than on March 30 and 4.5 percent above Dec. 30, 2011. By contrast, the average rate paid for a Hawker 800 outside North America increased by just 0.37 percent in the 30 days up to July 1, reaching $5,297.53, which was 2.5 percent below the average rate from three months ago.

The graph above represents a broad-based index displaying the average daily order value for flights requested through Avinode’s system, departing from European airports (ICAO E/L/U) within the next 4 weeks.

Index 100 = January 1, 2009, which had an average daily order value of $11,689,000

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