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LAS VEGAS—Demand for new business jets continues to be strong, with the return of 100% bonus depreciation and fractional ownership growth helping boost buying decisions, according to a survey of operators and forecast released by Honeywell Aerospace on the eve before the opening of NBAA-BACE 2025.
At the same time, nine of 10 operators responding to the survey say performance is their top criteria when choosing an aircraft, with range being the most significant factor, followed by costs, which include purchase price, operating costs and maintenance.
Buyers of new aircraft say they prioritize customer support, including good response time and technical support in their purchase decisions. They also consider advancements in new technology, including connectivity, fly-by-wire and advanced safety features, the survey shows.
In its new 10-year forecast, Honeywell expects delivery of 8,500 new business jets over the next decade valued at $283 billion with an average annual growth rate of 3%. It expects deliveries in 2026 to rise 5% over 2025 shipments.
“The strong demand for new jets continues to persist against a backdrop of increasingly complex macroeconomic and geopolitical factors,” the company says. “However, those factors have not slowed down the demand for new aircraft.”
Recent economic growth, increasing demand for fractional ownership and continued new aircraft development and technology upgrades have produced record levels of demand in business aviation, Heath Patrick, president of Honeywell Aerospace Technologies Americas Aftermarket, said. “Operators are increasing their usage rates and in turn manufacturers are continuing to ramp up production to keep up with growing demand.”
The passage of the One Big Beautiful Bill Act (OBBBA) allows businesses to deduct a large portion of the amount of certain assets, including business jets, in the year they are put into operation.
Fractional fleets have grown more than 65% since 2019 to roughly 1,300 aircraft now in service, Honeywell says, with a preference to midsize and super mid-size jets. According to the survey, 12% of current operators of wholly owned aircraft say they also own fractional shares, while another 15% say they are considering buying fractional shares in the future.
Nearly half say they want to increase the overfall flying capacity of their organizations, while 30% said they would use a fractional program to supplement current flight operations.
One surprise was the increase in aircraft utilization, said Keven Schwab, Honeywell strategic planning manager.
“Demand for utilizing the assets has been stronger this year than we were expecting,” Schwab said. “Not only is the actual flight activity holding up this year, the sentiment about the need to fly is also still there.”
Flight activity has increased with business jet flight hours up 3% from a year ago following flattish activity from 2023 to 2024, it said, with growth coming primarily from private operators and fractional ownership companies. Charter flights, meanwhile, have stabilized above 2019 levels after fluctuating through the pandemic. Activity from corporate flight departments, meanwhile, is lagging as they work to optimize costs and balance the use of their wholly owned aircraft, charter flights and fractional ownership.
Going forward, 28% of the operators said they plan to fly more in 2026 than during 2025 with 64% saying they plan to fly about the same number of hours.
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