As global energy markets are affected by the ongoing conflict between the US, Israel and Iran, the world’s wealthiest travelers are also feeling the pinch.
Private jet charter prices have risen by 20% and some long-haul flights are facing six-figure fuel surcharges.
Jet fuel has now reached $4.65 per gallon worldwide. This increase forced operators to even raise prices for flights booked months ago.
Although the private jet clientele is less price sensitive, some are still downsizing to smaller aircraft to reduce costs.
Fuel costs are usually part of almost all charters’ contracts, which allows the suppliers to charge higher costs regardless of when the flight is booked, even if it is confirmed six months in advance.
Although shocked by the cost, demand is surprisingly still strong. Business jet flights are up 5% in the WingX report year-over-year, while Flexjet has a 15% increase in fractional ownership utilization.
Reasons for resilience include recent airport disruptions caused by the government shutdown and the convenience-oriented priorities of affluent travelers.
