Coronavirus continues to upend modern life but one sector is booming in light of Covid-19 restrictions. Private jet charters.
Long thought to be the bastion of business travelers and the ultra elite, private jet travel is skyrocketing, as many Americans are worried over the lack of health and safety regulations on commercial airlines.
Charter flights have regained a 90% booking capacity as of June of 2020, according to GoGo Business, an in-flight connectivity and entertainment provider for business aircraft. Industry leaders say the majority of recent bookings are new customers.
From evacuation to a standstill
The road to new customer acquisition hasn’t been easy. In the early days of Covid-19, charters were hired to help with international evacuations, for private individuals as well as corporations and aid organizations. Companies like JetSuite saw a 20% increase in new broker requests in March, according to CondéNast Traveler. Similarly, Qatar Executive, their airway’s private flight enterprise, saw a 26% surge in requests, as compared to the previous year.
But then, the industry careened to a halt, as it was largely circumscribed by the same constraints as commercial airlines. Some companies folded – JetSuite filed for bankruptcy in April.
For those who were able to continue operating, the industry is now taking off, as Covid-19 containment policies lessen around the world but commercial air travel seems scary for most.
“We’ve seen a massive surge in inbound request and new customer acquisition,” in the last 90 days, said Magellan Jets’ President, Anthony Tivnan. The private jet and charter company reported a 117% increase in customer acquisition for June.
“There are about 8.2 million households in the US with a net worth of two million or more. The majority of them weren’t flying private before,” said Tivnan. “We are seeing a huge shift in that narrative now it is a health and safety concern.”
With some commercial carriers – like American Airlines AAL – refusing to close off middle seats, many people who would typically fly passenger airlines are just not interested. In addition, flying private gives customers more control over their entire trip – from avoiding TSA lines to waiting in line for check-in. Chartered aircraft are estimated to have 30 times lower risk for Covid-19, according to GlobeAir.
A change in destinations for charter flights
Instead of ferrying business travelers or offering charters for milestone events like a birthday or football game, private jets are ferrying people to domestic destinations in the United States.
Monarch Air Group, a private jet charter provider, saw an increase in demand based on the total number of booked flights, which rose 125 percent year-over-year; compared to June 2019. And 52% of their secured charter contracts from June 2020 were from new business.
“We used to see New York to the Hamptons, now we see Florida to the Hamptons,” said David Gitman, President of Monarch Air Group. “People who wouldn’t normally charter are chartering.”
Magellan also reported an increase in flights to second-home destinations like Jackson Hole, Boseman, Aspen, the Carolinas or Savannah.
“Last year we would have the vast majority of trips going to Italy or southern France. We just don’t see that,” said Gitman. “We see a lot of people traveling to their second home…These are people who would usually travel commercial. So either there is no flight or they are in a risk category.”
Bringing Fido along for the ride
In addition to more domestic destination jet charters are now ferrying animals around the globe, as many commercial carriers have suspended their cargo for pets, making private the only way to port animals. Monarch Air Group reported 10% of their flights have pets on board in the past three months.
Flying private may mean more direct travel
As commercial airlines limit their flights, private is also becoming an easier way to get between locations. “It is not just getting on a direct three hour flight anymore, now you are talking about a whole day of travel. Two or three congested airports,” said Gitman.
Lower cost for charter flights
Part of the boom in private jet travel could also the lower price, said Gitman, as jet fuel has hit rock bottom. Additionally, the CARES act suspended a 7.5% federal excise tax or FET on air transportation through January 2021. For consumers, this means private jet travel is about 15% - 20% less than normal.
“When you think of the airlines, it is a bigger issue than just the experience on the flight,” said Gitman. “Right now its impossible to practice social distancing on a plane. The airlines have to figure that out.”
This article originally appeared on Forbes.
