December 1, 2024
Q2 Jet Card hourly rates were down 1.3% from Q1 2023, but at $11,024, remained 31% above their Dec. 2020 low.
Q2 2023 Jet Card hourly rates were down 1.3% from Q1 2023, but at $11,024, remained 31% above their Dec. 2020 low
After dropping 5.2% in Q1 from their Dec. 2022 high, the average jet card hourly price dropped another 1.3% during the last quarter. It marks two straight quarters of declines.
The average hourly jet card rate at the end of June, including fuel surcharges and FET, was $11,024.
Excluding turboprops, the average hourly rate as we wrapped up Q2 2023 was $11,330 on the same basis.
Here is some more good news for private jet flyers:
The average number of peak/high-demand days for programs continued to decrease – down 4.7% in the quarter.
Meanwhile, daily minimums and non-peak reservation deadlines remain somewhat static.
There’s more good news for buyers.
The data doesn’t include bonus hours and flight credits, which have picked up in the last two quarters.
It’s a big change from 2022.
According to The Jet Card Report by Private Jet Card Comparisons, last year, the percentage of flyers who said they could negotiate free hours dropped by 42% from 2021.
The Q2 analysis also doesn’t include new, more aggressive off-peak pricing, now offered by three of the five largest private jet flight providers.
FlyExclusive’s Jet Club 4.0, launched at the end of June, features a 10% discount for flying on 139 Tuesdays, Wednesdays, and Saturdays. It also offers a 5% discount if you are willing to let it set your departure time, and it established a coast-to-coast 4.5-hour rate cap.
Not alone, in May, Wheels Up, as part of its slimmed-down primary service area, slashed hourly rates and daily minimums, providing savings as high as 26%.
Wheels Up also set a bunch of dates for July with even lower prices, and its capped rates mean you may save a bit more if you are flexible.
And last month, Flexjet, Inc.’s FXAir relaunched its fixed-rate, guaranteed availability jet card with four pricing tiers based on calendar dates.
Meanwhile, broker Magellan Jets cut joining fees on its memberships and relaunched a light jet category program in addition to its Phenom 300 jet card, essentially offering a lower lead price.
Back to the data.
The average hourly rate for very light jets ($7,421 per hour, including FET and fuel surcharges) was down 3.7% in the quarter, the biggest drop of any category, and 11.4% below Q4 2022.
Light jets held steady (+0.1%) with an average hourly rate of $8,055, 4.8% under Dec. 2022.
Ultra-long-haul private jets saw hourly rates increase 0.7% to $19,152 per hour, but still 7.2% below the end of last year.
However, super-midsize jet card pricing dropped 1.9% to $12,036 per hour and 5.0% below Q4 2022.
Turboprop hourly rates were down in the quarter by 1.8% to $6,398.
That’s 12.9% less than at the end of 2022.
Large cabin rates were down 1.3% from Q1 at $15,688 per hour, 2.6% below Q4 2022.
But now, some perspective.
Turboprops are still 43.6% higher than their low of Dec. 2020 when the CARES Act eliminated the 7.5% FET before fuel surcharge became a staple of card programs.
Very light jets are 45.4% above that same low, while light jets are 43.9% higher per hour, midsized aircraft is 34.5% more expensive on an hourly basis, super midsize jets are 31% more costly, and large cabin jets are up 29.6%
Ultra-long-haul jets have been least impacted on a percentage basis, up 25% from their Q4 2022 lows. However, on a dollar basis, that represents a $3,836 per hour increase.
Put another way, on a 10-hour flight; you would be paying close to $40,000 more than just two-and-a-half years ago.
Despite two straight quarters of decreases, jet card average hourly rates are still tracking 31.2% above their low.
| Aircraft Type | Hourly Rate | Change vs. March 23 |
Change vs. Dec. 22 |
Change vs. Dec 20 |
| Turboprop | $ 6,398 | -1.8% | -12.9% | 43.6% |
| Very Light | $ 7,421 | -3.7% | -11.4% | 45.4% |
| Light | $ 8,055 | 0.1% | -4.8% | 43.9% |
| Midsize | $ 9,360 | -0.6% | -4.5% | 34.5% |
| Super Midsize | $ 12,036 | -1.9% | -5.0% | 31.0% |
| Large | $ 15,688 | -1.3% | -2.6% | 29.6% |
| Ultra-Long-Haul | $ 19,152 | 0.7% | -7.2% | 25.0% |
| Overall | $ 11,024 | -1.3% | -6.2% | 31.2% |
| Without Turboprops | $ 11,330 | –1.2% | -5.2% | 31.3% |
As private flyers know, the devil is in the details regarding jet cards and memberships.
That’s because Peak Days, Callouts, and Daily Minimums impact when you can use your contracted rates and also how much you will pay.
The average number of Peak Days with programs offering fixed/capped hourly rates and guaranteed availability dropped 4.7% to 51.2 days per year.
That’s 124.6% more than the pre-Covid Dec. 2019 level of 22.8 days.
| In Days | Dec. 2019 |
Dec. 2022 |
March 2023 |
June 2023 |
Change vs. March 2023 |
Change vs. Dec. 2019 |
| Annual Peak Days | 22.8 | 55.7 | 53.7 | 51.2 | -4.7% | 124.6% |
Providers’ decisions to keep a relatively high number of Peak Days compared to pre-Covid may have to do with several factors.
First, they are still concerned about primary and recovery aircraft availability when demand surges.
Recovery aircraft cost to providers on high-demand days can be twice the paid price.
Many fixed-rate jet cards guarantee recovery aircraft at no additional cost.
In other words, a few mechanicals here and there on busy days, and if the provider is a broker or has to go off-fleet, there goes a full year of profits for that customer.
Also, operators are still vexed by supply chain issues, including people and parts shortages, with MROs not operating at pre-Covid capacity.
Another area jet card providers don’t seem anxious to see a return to pre-Covid levels is Callouts, the deadline to book flights at contracted rates.
Non-peak callouts during Q2 stayed steady at 66.9 hours, up 0.8% from Q1 2023.
| In Hours | Jun 2023 |
vs. March 23 |
vs. Dec. 2019 |
| Non-Peak Day Advance Reservation Deadline | 66.9 | 0.8% | 188.4% |
Pre-Covid – in December 2019, the average was just 23.2 hours.
Again, we believe this reflects a once-burned, twice-shy approach.
However, when it comes to Daily Minimums, providers are being more aggressive.
Short-flight flyers will continue to see good news as Daily Minimums, the minimum flight time charged per day, held steady.
Overall Daily Minimums were up 1.1% to 90 minutes but 17.4% below June 2022, when they spiked to 109 minutes.
They are also just 4.7% above their pre-Covid low of 86 minutes in December 2019.
While Large Cabin jets saw Daily Minimums increase only 1.6% from Q1 2023 at 125 minutes, they were still 23.8% higher than Dec. 2019.
| Aircraft Type | June 2023 (in minutes) |
Change vs. March 23 |
Change vs. June 22 |
Change vs. Dec 2019 |
| Light Jets | 71 | 1.4% | -31.7% | -9.0% |
| Midsize | 81 | 2.5% | -22.9% | -3.6% |
| Super Mid | 96 | 3.2% | -12.7% | 0.0% |
| Large | 125 | 1.6% | -4.6% | 23.8% |
| All | 90 | 1.1% | -17.4% | 4.7% |
Light and Midsize jets are seeing the most favorable movement in terms of Daily Minimums.
While Light Jet minimums increased 1.4% in the quarter to 71 minutes, they were still down 31.7% from June 2022, when the average Daily Minimum was 104 minutes.
MWhat’soreover, they are currently 9% under the previous low of 78 minutes in Dec. 2019.
Midsize Jet Daily Minimums were up 2.5% to 81 minutes in the quarter, 22.9% below their high of 104 minutes back in June of last year, and 3.6% below pre-Covid levels.
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