The private jet charter market is suffering from a Covid-boon headache, according to the CEO of LunaJets
The private jet flight market is taking “a major step back,” says a leading European on-demand charter broker.
Geneva, Switzerland-based LunaJets called the Covid-induced growth of the past two years “unsustainable.”
In a news release during the European Business Aviation Conference and Exhibition, LunaJets CEO Eymeric Segard said, “Our industry is highly cyclical and exposed to macro swings.”
He added, “We are not surprised by this slowdown in Europe. We had largely anticipated this situation but nonetheless remain very concerned by this new market.”
He predicts, “Low-interest rates, M&A, and corporate activities at all-time highs are clearly behind us, as we foresee a hard landing for our industry with potential supply dislocation risks if conditions remain.”
Last year, LunaJets revenues grew 40% to nearly $150 million despite a slowdown starting in August.
Since January, however, bookings dropped by 3%.
Segard said as consolidation has roiled the industry, LunaJets has separated itself by becoming a more important source of revenue to smaller operators that focus on quality over scale.
Looking ahead, Guillaume Launay, Group Head of Sales, said, “Our summer pre-booking level, although a little later than normal, remains strong, whereas pricing and availability are much better than last year. We now predict a return to normal after the chaotic Summer of 2022 due to airport and supply issues have abated significantly.”
Since the beginning of 2022, the company opened offices in Dubai, Zurich, and Madrid.
LunaJets offers clients sustainable aviation fuel and carbon offset options as part of its on-demand bookings.