UBS: Business Jet Activity Continues To Fall
UBS Investment Research’s business jet report–released yesterday–shows that business jet flight activity was 13 percent lower last month compared with the same period last year, although the data was slightly better than the 18-percent year-over-year decline in August. Year-to-date, flight activity is down 9 percent. As a result, UBS analyst David Strauss said, “We expect the service businesses of the manufacturers and suppliers to be negatively impacted.” The UBS data includes domestic and international business jet flight activity. “Short-range aircraft”–in other words, light jets–are leading the decline with 12 percent lower activity through September. Meanwhile, long-range business jet activity is 6 percent lower and midsize jet activity is down 5 percent. “We believe the deterioration in our survey combined with the increase in available for-sale aircraft and decline in flight activity presage what we think will be a significant slowing in new aircraft order activity,” Strauss wrote in the UBS report.