Air Charter Demand Rises, but Prices Still Fluctuate
As the northern hemisphere’s busy summer season nears, the start of June saw projected charter demand rise by more than 30 points, according to the forward-looking demand index generated by online charter portal Avinode. Avinode’s June demand index is 150.89, up from the May 1 index of 120.64 and almost 30 points higher than a year ago. But the anticipated increase in demand for flights was not reflected in Avinode’s price index for June 1. Projected pricing globally (99.03), in the U.S. (101.47) and in Europe (96.75) actually dipped slightly month-over-month. However, all three of these indices showed an approximate five-point increase over where they had stood this time last year. Avinode’s latest actual average flight-hour rates paid also show continued uncertainty about market conditions. In North America, rates for three sample aircraft types–Citation Excel, Hawker 800 and Challenger 604–as of June 1 were between 3 and 4.3 percent down from last month, with average hourly rates of $3,296, $3,523 and $5,078, respectively. International charter markets rates for the same jets show a slight month-over-month increase, generally rising by between 0.2 percent and 2.5 percent–€2,790 ($3,990), €3,084 ($4,410) and €4,822 ($6,895), respectively.