Private Jet Market Defies Global Turmoil as Demand Surges for Monaco GP, Cannes
Surging Demand for Private Jets Amid Global Uncertainty
By Alessandro Parodi, Tassilo Hummel and Joanna Plucinska
LONDON/PARIS/GDANSK, June 8 (Reuters) - As soaring jet fuel prices triggered by the Iran war send ripples across the global travel market, a wealthy elite of CEOs, celebrities and sports stars is flying by private jet in greater numbers than ever before, to glitzy events from the Monaco Grand Prix to the Cannes film festival.
The phenomenon is another sign of the so-called "K-shaped" economy that is showing up across consumer markets from luxury to dining, industry watchers say, as high-income travellers spend more while middle- and lower-income groups tighten their belts, with budget carriers in particular feeling the squeeze.
Jet fuel costs have roughly doubled since the start of the war in late February, forcing global airlines to cancel flights and raise ticket prices, while missile and drone strikes around the Gulf have seen flights almost halve in a region that was a global connection hub.
Wealthy Travelers Absorb Rising Costs
"The world is in turmoil, but not our passengers," Deniz Weissenborn, owner of Platoon Aviation, which charters eight-seat jets, told Reuters, explaining that its clients are wealthy enough to absorb higher prices.
"If you fly in a private jet, I don't think you're bothered by an increase of 1,000 or 2,000 euros."
Private Jet Flights on the Rise
According to aviation data firm WINGX, the number of private flights has increased by about 4% globally so far this year, adding thousands of trips. In the same period, overall global capacity has fallen 3-4%, data from aviation analytics firm Cirium shows.
Charter Jet Services See Uptick
'AS BUSY AS EVER'
Private jet pilots and executives told Reuters that charter jet services are seeing an uptick in bookings as wealthy travellers turn away from premium, business and first class in an effort to dodge the risk of commercial flight cancellations and airport disruption due to the conflict.
Amalfi Jets founder and CEO Kolin Jones said there had been around a quarter more requests for Cannes this year compared to last, while those for Sunday's Monaco GP were up almost a third, as people switched up from commercial flights.
"Lots who could afford it but flew commercial are now happy to pay more for the safer option," Jones said. "Cannes Film Festival, Monaco Grand Prix, and World Cup-related travel from Europe to the U.S. are driving demand."
Regional Trends in Private Jet Travel
Eight private jet executives said that while private traffic to the Middle East had dipped given airspace safety concerns, demand for travel to Europe and the United States was likely to approach record levels this year.
"It is as busy as ever," said Andy Spencer, a private jet pilot who has flown routes in the Middle East and Asia.
Private Jet Activity at Major Events
During early February's U.S. Super Bowl in California, private traffic at nearby airports was three times that of a normal day, WINGX told Reuters. For April's Masters Golf Tournament in Augusta, private traffic was 10 times more than normal, jumping from fewer than 50 flights to more than 400.
"Our customers' flight hours continue to hit record highs month after month," private jet maker Embraer's CEO Francisco Gomes Neto told Reuters at an executive aviation airshow in May in Sao Paulo, Brazil.
Debate Over Private Jets and Safety Perceptions
Criticism from Climate Groups
'PEOPLE FEEL SAFE WHEN THEY HAVE CONTROL'
Private jets have come in for criticism from climate groups and campaigners, who say their use underscores global inequality, is a threat to the environment and that regulation of the sector is too lax.
A spokesperson for the European Business Aviation Association said the sector played an important role in Europe's connectivity and criticism was overly simplistic, while manufacturers and charter operators added that well-heeled individuals were simply looking for more security in uncertain times.
Private Aviation as a Response to Global Events
"Every time there are world events, private aviation gets a little bit of a bump, every single time," said Jason Middleton, owner of Silver Air Private Jets, citing the Iran war, the Covid pandemic and unrest in South America.
"It's like a safety thing...People feel safe when they have control."
(Additional reporting by Gabriel Araujo; Editing by Adam Jourdan, Kirsten Donovan)
