40% Fewer Business Aircraft Deliveries In 2020 Forecasted

Business aviation was an industry in transition as it entered 2020. The sector never fully recovered from its downturn after the 2009 financial crisis. Manufacturers rationalized production and refreshed product lines in response. But for a market that grew giddily in the first years of the new century, only to crash, flat had become the new normal.

The immediate effect of the pandemic was an inability to hand aircraft over to customers because of travel restrictions. Travel restrictions also kept sales teams locked down, so manufacturers reported a drop in orders for the first quarter. But cancellations were few. 

Anticipating lower demand because of a global economic slowdown, analysts at Jefferies forecast 40% fewer deliveries this year.

That said, the industry believes the market will recover and may actually benefit in the aftermath of the pandemic. The factors behind the collapse of 2009—irrational exuberance, overproduction, wealth destruction and stigmatization—are not present this time, say market watchers.