Private jet travel is back in the news after the Chancellor of the Exchequer announced, in the Budget, that there will be a hefty 50% rise in air passenger duty from 2026 for flights on these types of aircraft. 

However, this is not deterring individuals and businesses looking to travel by private jet. Such surcharges still only make up less than two per cent of the average cost of a flight, which will easily be absorbed by customers. 

The industry has boomed since Covid as top executives turn to private flights to avoid crowded airport terminals and commercial jets, which have been full to the brim with the surge in leisure travel and now business trips.

Many jets have been chartered by first time buyers and the numbers speak for themselves. Over five million private flights were taken in 2023, a 15% rise since pre-pandemic times, according to data from Wing X.   

In the UK, so-called business aviation facilitates £4.9 billion a year in gross value add or GVA to the UK economy, with roughly 223,000 flights annually, according to CBI Economics.

The same research found these jets were overwhelmingly used for revenue generating activities, with 94% citing meetings with clients and potential customers, while 69% cited meetings with business partners. 

“The primary benefit is increased efficiency and being able to respond swiftly to urgent requirements and adapt to changing schedules”

According to recent figures, a private jet takes off every six minutes in the UK, making it the private jet capital of Europe. London and Paris is the most popular route, accounting for 3,357 flights, and six of the top 10 European routes also included London.

Demonstrating continued corporate demand for private flying, earlier this year Advantage Travel Partnership, the UK-based consortium of travel management companies, added private air charter provider Air Partner to its air programme.

Time pressures

There are a lot of advantages to including private charters in a corporate travel programme.

Flexibility, agility, comfort and destressing travel are paramount, especially for top executives.

Private jets also allow access to locations closer to the final leg of a journey, thanks to downtown air strips and private terminals.

Time saving is a critical mission of private aviation. Commercial air travel is often plagued by delays, unpredictability and inefficiencies due to the hub-and-spoke model of modern air travel, all of which can be overcome by private flights.

Chartered jets consistently ensure top executives can travel reliably.

Those who use these jets have the ability to work in a distraction-free environment with reliable Wi-Fi, so productivity is high. They also benefit from greater privacy.

“The primary benefit is increased efficiency and being able to respond swiftly to urgent requirements and adapt to changing schedules without the limitations of commercial routes and timetables,” says Charlie Wilcox, Director of Charter at ACC Aviation. 

“Private charters offer a level of flexibility tailored specifically to clients’ travel needs, including bespoke routes and onboard services aligned with individual preferences.”

And that’s the key word here – bespoke. Chartered fights can admirably handle urgent and complex travel needs. They work for particular businesses and executives where every minute counts. In a couple of hours, top decision makers can reach multiple cities and work sites. This is a feat that is often impractical by train or by commercial flights.

Price points

There are a myriad of options to choose from to meet travel programme needs, whether it’s a jet charter on demand, fractional ownership, or outright ownership. 

For those who use an aircraft upwards of 300 hours per year, it makes more economic sense to own rather than charter, say experts.

“There are no cheap jet charter options. The operating cost of a jet is an exact science”

For travel managers, drilling down and understanding the pricing model is crucial, and so is working out the benefits of membership, fractional or on-demand contracts.

Many private jet providers allow buyers to book several seats at a subsidised price per person for a round trip. 

These dynamic pricing models have increased demand for private jets.

Traditional commercial carriers often charge change or cancellation fees, plus there’s the high cost of last-minute bookings.

With a private jet, there are often no hidden fees and businesses can better control their travel spend even in times of disruption.

Cost considerations

There are many misconceptions that the industry has to overcome to persuade travel buyers, particularly when it comes to the cost of private jet travel.

“Historically, air chartering has been viewed purely as a luxury service. While that may still be true for private individuals, for group business travel involving multiple people on one flight, it’s often a time-efficient and, in many cases, a cost-effective solution,” says Wilcox from ACC Aviation.

But Kevin Singh, Founder and President of Icarus Jet, says travel buyers should not expect the discounts or special fares they might get with commercial flying.

“There are no cheap jet charter options. The operating cost of a jet is an exact science. There are no free rides or pennies on the dollar deals. The average cost per hour of a jet charter is around US$5,000,” he says.

Carbon impact

The private and charter jet sector is working hard with Sustainable Aviation Fuel (SAF) and electric aircraft, but these are early days. 

“There are many ways to mitigate the environmental impact, such as choosing fuel-efficient aircraft, using SAF, and sourcing responsibly for onboard catering and supplies. Many charter companies also offer carbon offsetting options,” says Wilcox at ACC. 

“According to recent figures, a private jet takes off every six minutes in the UK, making it the private jet capital of Europe”

The unique characteristics of private aviation, coupled with consumer expectations, position it as an ideal candidate to power the electric revolution, argues Singh at Icarus Jet.

While investment is being made in electricification there are challenges relating to range limitations and battery weight. A hybrid approach is emerging as the most likely solution in the shorter term.

Meanwhile, the reputation of the private jet sector continues to suffer.

Earlier this year, a controversial decision by Starbucks to fly its new CEO nearly 1,000 miles from California to its Seattle headquarters multiple times a week made the headlines.

“Business aviation already faces much criticism; actions like Starbucks’ jet-commuting CEO only add fuel to the fire of public outrage,” says Singh. “Where our industry is moving toward SAF, route optimisation and electrification, these public contradictions make those efforts seem performative.”