Business Jet Market Soars in Q1 2025: A Strong Start Amid Economic Uncertainty

The business jet market kicked off 2025 with remarkable strength, showcasing resilience and growth despite lingering economic uncertainties, according to Global Jet Capital’s Q1 2025 Market Brief. The industry’s robust performance is driven by increased flight operations, rising demand for both new and pre-owned aircraft, and a stabilizing macroeconomic environment, positioning business aviation for a promising year ahead. A new dawn, perhaps.

Global Jet Capital, a leader in business aircraft financing, reports that flight operations in Q1 2025 grew by 3.1% year-over-year, reflecting a growing user base and sustained demand for private aviation’s flexibility and efficiency. This uptick follows a strong Q4 2024, where flight operations rose by 2.4% compared to the previous year, signaling a consistent expansion in the sector. The inherent value of business jets—offering safety, productivity, and comfort—continues to attract new users, many of whom entered the market post-COVID and remain loyal to private aviation.

The market’s strength is further evidenced by a surge in aircraft transactions. In Q1 2025, total transaction volume for new and pre-owned business jets increased by 4.8% compared to Q1 2024, driven by demand for heavy jets and newly certified models. Dollar volume saw an even more significant rise of 14.2%, reflecting the market’s preference for high-value aircraft. While new aircraft deliveries grew modestly by 2.3%, original equipment manufacturers (OEMs) are making strides in addressing supply chain and labor constraints that have persisted since the pandemic. Global Jet Capital notes that OEMs expect to further increase deliveries throughout 2025 as these challenges ease.

Pre-owned aircraft transactions also showed resilience, with a slight increase in dollar volume despite a modest decline in unit volume. Buyers continue to favor younger, high-value jets, though a pricing gap persists between sellers aiming to capitalize on post-COVID value gains and buyers anticipating a return to historical norms. Inventory levels, while gradually increasing, remain below pre-COVID standards, supporting sustained demand and stable pricing.

The macroeconomic backdrop provides a cautiously optimistic outlook. Global GDP growth held steady at 2.8% in Q1 2025, supported by resilient U.S. labor markets and recovering economies in East Asia, South Asia, and the Eurozone. Central banks, including the U.S. Federal Reserve, have begun lowering interest rates, with cuts expected to continue through mid-2025, easing financial pressures on aircraft financing. However, geopolitical uncertainties and supply chain challenges remain headwinds that the industry continues to navigate.

Global Jet Capital’s data underscores the business jet market’s ability to thrive amid complexity. OEM backlogs grew by 6.5% year-over-year, reaching $49.2 billion, reflecting strong order books and confidence in future demand. The book-to-bill ratio, a key indicator of market health, remained stable at 1:1, indicating a balanced pace of orders and deliveries. As OEMs resolve supply chain bottlenecks and new aircraft models gain traction, the industry is well-positioned for continued growth.

Looking ahead, Global Jet Capital forecasts sustained demand and increased deliveries in 2025, supported by an expanding user base and improving economic conditions. The business jet market’s strong Q1 performance sets a positive tone, reinforcing its role as a vital tool for global business, aviation and travel.