As global energy markets are hit by the ongoing conflict between the U.S., Israel, and Iran, the world’s wealthiest travellers also feel the pinch.
Prices of private jet charters have increased 20%, with some long-haul flights facing six-figure fuel surcharges.
Jet fuel has now reached $4.65 per gallon worldwide. This spike forced operators to even increase the prices for flights that were booked months ago.
Although the private jet clientele is less price-sensitive, some are still downsizing to smaller aircraft to mitigate costs.
Fuel costs are usually part of almost all the charters’ contracts, which enables the suppliers to impose higher costs regardless of when the flight is booked, even if it is confirmed half a year earlier.
Although shocked by the costs, the demand is surprisingly still strong. Business jet flights are up 5% in the year-over-year WingX report, while Flexjet has a 15% increase in fractional owner utilization.
The reasons for resilience include recent airport disruptions caused by the government shutdown and the convenience-oriented priorities of affluent travellers.
