Posted on November 30th, 2018
Last year “should mark a bottom” for the business jet market, but the path of recovery is “unclear,” according to J.P.Morgan’s latest business jet monthly report. “We estimate that there were about 650 business jet deliveries last year, which would represent a 43-percent decline over five years. Deliveries in 2014 should be up–we estimate by about 10 percent–with help from new and upgraded platforms,” it noted.
“Nonetheless, demand remains weak, and our confidence in a recovery is based on leading indicators such as falling used inventory, especially among young jets, accelerating flight ops growth and faster GDP growth, including in the U.S., which is by far the largest business jet market,” J.P.Morgan aerospace analysts noted. “More concrete signals such as orders have yet to emerge, except from Bombardier fleet customers, and we still do not expect much optimism on this front when OEMs report fourth-quarter results in the coming weeks.”