There have been $125.6 billion in 2026 IPO proceeds, versus $45.3 billion at this point last year creating more UHNWs.
A wave of initial public offerings is expected to provide private jet operators and manufacturers with a strong tailwind of demand.
That’s according to research from investment bank Jefferies.
IPOs in 2026 have already matched 75% of last year’s totals.
IPO proceeds year-to-date are almost three times last year’s.
Currently, there have been $125.6 billion in IPO proceeds, versus $45.3 billion at this point last year.
The figures include U.S. regular-way IPOs with a base deal size of $20 million.
The numbers exclude SPAC IPOs.
“Historically, business jet demand has correlated more closely with capital markets activity, for example, IPO volumes, than with broader equity market performance,” per the authors, Sheila Kahyaoglu and Ceara Perry.
IPO activity and deliveries of new private jets are 70% correlated over the past 10 years.
That excludes 2020 and 2021, which were Covid-impacted years.
Also, the growth of the UHNW Population is 83% correlated with private jet flights.
UHNWs are defined as households with a net worth exceeding $30 million.
“General wealth creation is considered a leading indicator of business jet demand, as approximately 30-to-40% of deliveries are to corporate customers, 20-to-30% are to high-net-worth individuals, 10% are to fractional operators, and the remaining 30% are to charter operators and other purposes,” per the report.
The authors noted, “The global billionaire and UHNW population has grown at a 5% CAGR since 2019, culminating in a staggering total of 713,626 UHNW individuals and 3,110 billionaires.”
Knight Frank, earlier this year, said UHNW second homes in remote locations increase demand for private jet flights.
Airline members of the International Air Transport Association are lagging behind the growth of private jet travel.
IATA member revenue passenger kilometers are up 1% year-over-year compared to 4% for private jets.
“Despite fuel comprising 35% of business jet operating costs, demand stands to benefit more from oil wealth creation in exporting regions than falter from price sensitivity impacts,” per Jefferies.
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