Honeywell Projects 8,500 Business Jet Deliveries Worth $280 Bln Over Next Decade

(RTTNews) - Honeywell (HON) published its 33rd annual Global Business Aviation Outlook, forecasting up to 8,500 new business jets worth $280 billion will be delivered over the next decade, an increase in value from last year's forecast. However, the five-year new jet purchase plans of business aviation operators surveyed remain consistent with last year's results, indicating that demand for new aircraft is stabilizing well above pre-pandemic levels.

Additionally, the survey reveals ongoing plans by business jet manufacturers to ramp up production in response to strong backlogs and stable book-to-bill ratios expected to persist through 2024.

Key findings from the 2024 Honeywell Global Business Aviation Outlook include: New business jet deliveries in 2025 are expected to be 12% higher than in 2024, with expenditures anticipated to rise by 11%. Five-year purchase plans for new business jets remain comparable to last year's survey, representing 18% of the current fleet. Fleet additions are consistent with last year's results at 3% of the fleet, aligning with historical industry performance. More than 90% of respondents expect to fly more or about the same in 2025 as in 2024. Large jets are projected to account for about two-thirds of all expenditures on new business jets over the next five years, consistent with last year's findings.

New aircraft models introduced in recent years have driven increased demand for new aircraft, a trend which survey results indicate will continue throughout this decade and into the early 2030s.

According to Honeywell, North America will see 66% of the five-year new jet deliveries, which is consistent with historical demand for the region. 30% of respondents from North America expect to fly more next year.

European operators will comprise 13% of the five-year new jet deliveries, which is one percentage point below last year's share and follows a similar trend over the past few years.

Operators in Latin America will account for 10% of the five-year new jet deliveries, which is an increase of five percentage points from their share in 2023. In contrast to last year, respondents in Latin America are optimistic about favorable macroeconomic conditions, which will likely drive increased flight activity as well as demand for new jets. This effect is particularly strong in Brazil where year-over-year flight activity growth is stronger than the global average.

Operators in Asia Pacific will make up 7% of the five-year new jet deliveries. APAC is returning to typical fleet growth after several years of decline throughout the pandemic. There is a notable uptick in flight activity in Australia, where departures are up nearly double digits year-over-year.

Fleet growth here accounts for 3% of the five-year new jet deliveries, which is a decline of three percentage points from last year's surveyed expectations. Flight activity in the region declined year-over-year through the first half of 2024, likely due to conflicts in the region.