Demand for charter flights in Europe looks set to increase steeply over the remainder of the continent’s peak summer vacation season, according to the latest projections from online charter portal Avinode.
J.P. Morgan Aerospace & Defense’s April Business Jet Monthly report sees “little evidence that new jet demand is gathering momentum” and “we are not expecting a particularly strong Q1.”
Factors contributing to the lack of demand include elevated inventory of younger jets, prices of used jets still declining and flight ops that are “barely growing in the U.S. and shrinking in Europe.”
Newly formatted data from online charter portal Avinode gives a clearer impression of the fluctuations in charter aircraft demand and pricing.
At the NBAA Convention later this month in Orlando, Fla., “Manufacturers will likely emphasize the potential for rising deliveries beyond 2012, pockets of demand strength and the products they are developing,” JPMorgan aerospace analysts wrote in the firm’s latest business jet monthly report, released yesterday. “However, with U.S. and European flight ops flat to down year-to-date, Chinese demand facing pressure and OEM backlogs yet to turn up decisively, optimism should be muted.”
Demand for charter flights dipped early this month, according to data from online charter portal Avinode. At 143.21, the company’s forward-looking demand index for the 30-day period from September 10 was 40 points down from where it was a month prior, seemingly showing the market cooling slightly at the end of the northern hemisphere summer season. However, the September 10 index was still almost 37 points higher than where it was 12 months earlier.