Charter Market Has Yet To Feel the Summer Heat

 - June 6, 2013, 3:35 PM

The executive charter sector appears not to be making a promising start in the Northern Hemisphere summer season, according to the latest demand projections from online charter portal Avinode. As of June 5, the company’s forward-looking demand index showed anticipated aircraft bookings for the next 30 days generally down compared with the May 5 index.

For midsize and heavy jets in both Europe and North America, the index was down between 26 and 58 points. In Europe the light jet sector increased by 60 points over the same period, while the same market segment in the U.S. and Canada was up by just 2 points. However, all aircraft groups showed strong demand on June 5 compared with where the index stood on the same day last year.

Avinode’s pricing index shows flat expectations for flight-hour rates across all aircraft categories and on both sides of the Atlantic. Average flight-hour rates in Europe over the six months from Nov. 30, 2012 to May 31, 2013 were down slightly for three types that Avinode tracks for AIN: the Bombardier Challenger 604, Cessna Citation Excel and Hawker 800. By contrast, in North America average rates for these same aircraft increased over the same period by between 1 and 3 percent.