UBS Reports Slowing Bizav Flight Activity
According to UBS Investment Research’s business jet update issued on Friday, U.S. and international bizjet flight activity was “sharply lower” in August. However, about 86 percent of the flights UBS tracked were domestic flights within the U.S., meaning the international sampling is somewhat under-represented. Analyst David Strauss noted that total cycles were 18 percent lower than in the same month last year and 8 percent lower year-to-date, “driven mainly by reduced charter activity.” Non-charter bizjet activity, however, was only 4 percent lower on a rolling 12-month basis and 6 percent lower year-to-date, UBS figures show. “While flight activity has declined in all three range classes, short-range aircraft activity has seen the largest year-to-date decline–12 percent lower through August,” Strauss wrote, “while long-range aircraft activity is 6 percent lower and medium-range aircraft activity is 4 percent lower.” Meanwhile, a separate UBS bizjet operator survey shows a “worsening view” of market conditions. “Overall, business conditions are nearly 30 percent below peak levels of last year and have now fallen to below normal levels with our bearish outlook…suggesting that further deterioration is likely,” the survey says.