UBS: Bizjet Market 'Heavily Skewed' Toward N. America

 - August 22, 2017, 10:50 AM
Some three of our every four midsize jets that were recently delivered went to customers in North America, predominantly in the U.S., according to UBS Global Research. This category includes aircraft such as Textron Aviation's Cessna Citation Latitude. (Photo: Textron Aviation)

Global business jet deliveries, excluding very light jets, slid 6 percent year-over-year in the second quarter, despite increases of 18 and 14 percent in North America and China/India, respectively, according to data released today by UBS Global Research. These gains were “more than offset” by a 60 percent erosion of business jet shipments in Latin America from a year ago and a 40 percent drop in emerging countries in Europe, Middle East and Asia (EMEA). Second-quarter deliveries were flat in Western Europe.

UBS noted that the overall business jet market is “heavily skewed” toward North America, which now accounts for 64 percent of total deliveries. In fact, more than three-quarters of light and midsize-cabin jets are going to customers in North America. The market is more balanced on the large-cabin jet side, with less than half—44 percent—of these aircraft being delivered in the U.S., Canada and Mexico.

By aircraft category, midsize jet shipments rose 13 percent in the second quarter, while light and large-cabin jets fell 15 percent and 5 percent, respectively. Notably, UBS said that the latter segment appears to have stabilized following a more-than-30 percent decline thanks to Latin America, Western Europe and China/India. UBS said that, by model, the large-cabin decline has been driven by lower Global 5000 and Gulfstream G450/550 deliveries.

On a rolling 12-month basis, worldwide business jet deliveries sank 10 percent, including declines of 3 percent in North America, 5 percent in Western Europe, 26 percent in emerging EMEA and 44 percent in Latin America. This was partially offset by 7 percent growth in China and India.