- thirty first annual International Enterprise Aviation Outlook tasks 8,500 new enterprise jet deliveries valued at $274 billion over the following decade.
- Projected enterprise jet deliveries, expenditures over the following decade surge 15% from final yr’s survey.
- Enterprise jet utilization in 2022 is predicted to be 9% greater than a yr in the past.
- Operators report far larger curiosity in decreasing their carbon footprints.
ORLANDO, Fla., Oct. 16, 2022 /PRNewswire/ — Honeywell’s (NASDAQ: HON) thirty first annual International Enterprise Aviation Outlook forecasts as much as 8,500 new enterprise jet deliveries value $274 billion from 2023 to 2032, which is up 15% in each deliveries and expenditures from the identical 10-year forecast a yr in the past. This yr, surveyed operators reported new jet buy plans on par with 2019 ranges, with fleet addition charges doubling from final yr’s reported intentions. Respondents’ suggestions on this yr’s survey aligns with business experiences of sold-out enterprise jet manufacturing strains for the following a number of years.
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“The enterprise aviation business is enormously benefitting from a wave of first-time customers and patrons due partially to altering habits introduced on by the COVID-19 pandemic,” mentioned Honeywell Aerospace President, Americas Aftermarket, Heath Patrick. “The enterprise aviation sector is predicted to get well to 2019 supply and expenditure ranges by 2023, which is far ahead of beforehand anticipated. Demand for brand new enterprise jets is as excessive as we have seen it since 2015, and we count on excessive ranges of demand and expenditures for brand new plane for a number of extra years.”
Key findings within the 2022 Honeywell International Enterprise Aviation Outlook embrace:
- New enterprise jet deliveries in 2023 are anticipated to be 17% greater than in 2022. Expenditures are anticipated to be 20% greater.
- 5-year buy plans for brand new enterprise jets are up three proportion factors in contrast with final yr’s survey; this reaches 2019 ranges and is equal to 17% of the present fleet.
- Fleet additions are up for the second yr in a row, doubling 2021’s charge and topping 2% of the fleet.
- New jet deliveries and expenditures over the following decade are projected to develop at a 2% common annual charge, in step with anticipated worldwide long-term financial progress.
- One-third of these surveyed count on to fly extra in 2023 versus 2022; 64% count on to fly at the least the identical quantity, and simply 4% count on to fly much less.
- Giant, long-range plane courses are anticipated to account for greater than 70% of all expenditures of recent enterprise jets within the subsequent 5 years.
- Simply 2% of surveyed operators plan to get rid of an plane with out alternative, which is half the speed gleaned in 2021.
- 5-year buy plans for used jets stay excessive, totaling 28% of the present fleet and on par with final yr’s outcomes. Excessive demand for used jets will preserve pressuring the already low stock of jets obtainable on the market.
New Customers of Enterprise and Personal Aviation
The enterprise aviation business is benefitting from waves of first-time personal aviation customers and patrons, which is probably going attributed to COVID-19. At instances in 2022, flight exercise met ranges not seen since 2007, which was the busiest yr ever for enterprise aviation. Issues about publicity to pathogens and the discount of premium class airline providers helped drive current progress in enterprise and personal aviation. The 2022 Honeywell survey sampled first-time enterprise plane house owners who’ve made their purchases since 2020 and operators who’re capturing first-time personal aviation customers.
- Practically 74% of surveyed new customers of personal aviation count on to maintain the identical stage of flying in 2023 as they did in 2022, which is 10 proportion factors above the entire fleet common. Solely 4% count on to fly much less in 2023.
- Practically 85% of first-time customers function within the Americas.
- Throughout the Americas, 80% of first-time patrons function in the US; the remainder largely function in Brazil.
- Enterprise turboprops and small cabin jets every make up 35% of the fleet carrying these new customers, adopted by medium jets (18%) and enormous long-range jets.
Sustainability in Enterprise Aviation
Honeywell is dedicated to reaching carbon neutrality by 2035 in its operations and amenities and to driving aviation sustainability with a variety of ready-now options that may assist a extra sustainable future for the sector. This yr’s survey encompasses a devoted part on operators’ present and future plans to cut back their carbon footprint throughout operations.
- Half of this yr’s surveyed operators report at present implementing at the least one methodology to cut back their carbon footprint, which is 30 proportion factors above final yr’s survey.
- Essentially the most continuously talked about present methodology to cut back carbon footprint is “fewer or slower personal jet journeys” (20%), adopted by “rising passenger capability” (17%).
- Sustainable aviation gasoline (SAF) is the third-most talked about present methodology to cut back carbon footprint (14%); nonetheless, operators cite challenges with SAF availability.
- Greater than 60% of operators plan to both undertake or enhance strategies for extra environmentally pleasant operations sooner or later, and 37% cite SAF as the most typical method to obtain this aim.
- The survey requested the remaining 40% what would compel them to undertake any strategies to deal with sustainability sooner or later, and 57% of those operators cited financial incentives comparable to tax advantages or working price financial savings.
Making an Affect on Enterprise Selections
The International Enterprise Aviation Outlook displays present operator considerations and identifies longer-cycle tendencies that Honeywell makes use of in its personal product determination course of. The survey has helped establish alternatives for investments in sustainability options, has expanded propulsion choices, progressive security merchandise, providers and upgrades and has enhanced plane connectivity choices. The survey informs Honeywell’s enterprise pursuit technique and helps persistently place the corporate on high-value platforms in progress sectors.
Methodology
Honeywell’s forecast methodology is predicated on a number of sources, together with macroeconomic analyses, authentic tools producers’ manufacturing and growth plans shared with the corporate, and knowledgeable deliberations from aerospace business leaders. Honeywell additionally makes use of data gathered from interviews carried out throughout the forecasting cycle with 152 nonfractional enterprise jet operators worldwide. The survey pattern is consultant of all the business by way of geography, operation and fleet composition. This complete method gives Honeywell with distinctive insights into operator sentiments, preferences and considerations and gives appreciable perception into product growth wants and alternatives.
About Honeywell
Honeywell Aerospace services are discovered on nearly each business, protection and area plane. The Aerospace enterprise unit builds plane engines, cockpit and cabin electronics, wi-fi connectivity programs, mechanical elements and extra. Its {hardware} and software program options create extra fuel-efficient plane, extra direct and on-time flights and safer skies and airports. For extra data, go to www.honeywell.com or comply with us at @Honeywell_Aero.
Honeywell (www.honeywell.com) is a Fortune 100 expertise firm that delivers business particular options that embrace aerospace services; management applied sciences for buildings and business; and efficiency supplies globally. Our applied sciences assist plane, buildings, manufacturing vegetation, provide chains and staff turn into extra related to make our world smarter, safer and extra sustainable. For extra information and knowledge on Honeywell, please go to www.honeywell.com/newsroom.
This launch accommodates sure statements that could be deemed “forward-looking statements” inside the that means of Part 21E of the Securities Trade Act of 1934. All statements, aside from statements of historic reality, that tackle actions, occasions or developments that we or our administration intends, expects, tasks, believes or anticipates will or could happen sooner or later are forward-looking statements. Such statements are based mostly upon sure assumptions and assessments made by our administration in gentle of their expertise and their notion of historic tendencies, present financial and business circumstances, anticipated future developments and different components they consider to be acceptable. The forward-looking statements included on this launch are additionally topic to quite a few materials dangers and uncertainties, together with however not restricted to financial, aggressive, governmental and technological components affecting our operations, markets, merchandise, providers and costs. Such forward-looking statements usually are not ensures of future efficiency, and precise outcomes, developments and enterprise selections could differ from these envisaged by such forward-looking statements. We establish the principal dangers and uncertainties that have an effect on our efficiency in our Kind 10-Ok and different filings with the Securities and Trade Fee.
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