Lots of industries are underperforming because of the COVID-19 pandemic, but many have continued to grow unaffected. The aircraft charter service industry, for example, is known to have continued to grow during the pandemic.
Why is that? It turns out, for some rich people, calls to keep their distance, wear masks, and not travel anywhere do not keep them at home. They keep on traveling to get rid of boredom.
However, they did not always go out for sightseeing. Business people and high-ranking company officials travel a lot because of business trips, duties from the office, and the like.
To be able to leave but still be free from the danger of pandemic transmission, rich people and business people choose to rent airplanes. Looks expensive to many people, but affordable for them.
Because of this, the global aircraft charter market is known to continue to grow during the pandemic, even though commercial planes are hampered from flying due to restrictions on community activities.
Based on data released by Technavio, a market research firm based in London, the global aircraft rental market is expected to grow 5% during 2020-2024. Market growth during that forecast period was worth US $ 7.35 billion.
In 2019, according to Technavio, the global aircraft leasing market is worth US $ 26.57 billion. In 2024, the market value is believed to increase to US $ 33.08 billion.
The Air Charter Service, the world’s largest aircraft charter broker, reinforces the data. Air Charter Service reported receiving increased requests for leisure inquiries and a 14-percent spike in bookings during 2020.
Andy Christie, Group Private Jets Director at ACS, as quoted by Travel Pulse, said that his company, which received a 25% increase in aircraft charter orders during 2020, is expected to continue to receive an increase of up to 25% this year.
Apart from leasing for passenger needs, the global aircraft rental market is also contributed by leasing for cargo transportation needs. Unfortunately, the volatility of aviation fuel prices is disrupting market growth.
