UBS Sees Market Stabilizing, with Growth Next Year
In its latest Business Jet Update released yesterday, UBS Investment Research predicts 8- to 10-percent growth in bizjet flight activity for the coming year, with a 12- to 14-percent increase in movements for the first half of next year, based on recent trends. According to the report, while all three range classes of jet are slowly recovering, the short-range class–most affected during the downturn–has shown the greatest signs of improvement, with flight activity up 20 percent since the bottom of the March trough. Following a September that saw a 7-percent increase in overall business jet cycles, October remained steady, with movements roughly 17 percent above the March low, although 25 percent below the peak 2007 levels. The report cautioned that the risk of an extended downturn remains, due to market factors such as significant oversupply, fractional weakness and tight financing.