Introduction
One thing we’ve all been exposed to is the apparent rising cost of private jet charter flights. Many attribute it to the COVID-19 aftermath, but there are numerous other factors to keep in mind when determining if the cost is rising faster than the market will bear or if it is rising in direct relation to the costs associated with the economy at large. Supply and demand rule the day when it comes to private travel, and we want to open the books and take a closer look at what costs are associated and how the current economy are affecting them. The goal of this article is to help paint a clear picture of why the costs are higher than a few years ago. That way, you can make an educated choice.
To reveal the real costs associated, it takes a breakdown of charges and costs involved for both the private jet owner/operator and the charter broker. When these two components are combined, you arrive at the total price you will pay to fly a private jet when chartering or using a Jet Card Program. Obviously, the costs associated also apply if you fly on your own private jet or fly using a fractional ownership, but will not include the charter broker add-ons or margins. For our purposes here, we’re going to focus on the private charter model for this blog article.
Current Private Jet Charter Numbers?
“For many, private travel is something they tried in the pandemic and a luxury they’re not willing to give up now,” global luxury travel agency consortium Virtuoso reported in a recent survey of travel advisors released in August 2023. They went on to report, that now more than ever, high-net-worth travelers are seeking privacy and personalization as they plan upcoming trips. “Private aviation is climbing in popularity for domestic and shorter international flights,” the luxury travel network noted.
Michelle Baran, the senior travel news editor at AFAR Magazine, reported that buying a private jet can range between $2M-100M. To compare numbers, BankRate.com reports that owning a private jet can cost between $2.98M for very-light jets and can range all the way up to $600M for Jumbo VIP airliners. These price tags can be out of the question for most individuals. That is why many have turned to flying private jet charters to fulfill their current travel needs. These private flights can range between $1.3K-13K per flight depending on aircraft type, distance, and other cost factors.
Here’s an example of the competitive private charter numbers:
Six-hour cross-country private jet charter flight costs
The current survey results and industry trends indicate positive rise in private jet flights even as the costs are rising to higher levels. The reason why is attributed to the benefits of private jet flight vs. those of commercial jet aircraft options. You can read more on our other blog covering this subject here.
How many people are flying privately now is a good question. Here’s an answer from Business Traveler Magazine in 2022, “Around 5.5 million business aircraft took to the skies last year— a 10 percent year-on-year rise, and a 14 percent increase compared to pre-pandemic levels.” BigIssue Magazine offered these numbers, “According to new research, there were a record 5.3 million private jet flights in 2022, while the total private fleet expanded to around 23,000 aircraft.” With this increase still working through 2023, these numbers are expected to continue to increase, topping new records.
So, we know there is a cost increase and people are flying in record numbers post-pandemic. It’s critical to help new travelers and those that haven’t flown in a while to better understand the costs involved in private jet options. With this information, it is easier to make an informed decision and not balk at the costs that have been meticulously calculated for today’s expenses and fees. We hope that the breakdown of the costs associated below will provide some guidance on why costs have increased and lay to rest some trepidation on accepting that costs have increased for good reason. Let’s dive in!
What Costs and Fees Affect the Price?
The cost of flying private jets always varies significantly depending on several factors. Here are some of the key factors that calculate the current costs of private jet travel:
- Type of Aircraft Size and Capacity: The choice of aircraft plays a major role in determining the cost of a private jet flight. Larger and more luxurious aircraft typically come with higher operating costs. The size and capacity of the aircraft you select will also greatly affect the cost. Larger jets can accommodate more passengers, fly further, and may require more crew members, resulting in higher operating costs. Smaller planes like turboprops and light jets are generally more cost-effective than large long-range jets, but have more limitations on storage, amenities, comfort, and capabilities.
Ninja Tip: When choosing a private jet to meet your needs, you must look at the purpose of the flight, the number of passengers, the special luggage requirements, the airport limitations, and the distance to fly. These factors will help determine what jet is capable of meeting those needs economically and with the comfort you desire. All these items will determine the costs that come with that type and model of aircraft. - Distance and Route: The distance you plan to travel, and the specific route can greatly impact the cost. Longer flights generally cost more due to increased fuel consumption and maintenance expenses factored into the flight hours. Non-direct routes or landing at airports with higher fees can also add to the cost. Also airports with limitations on runway length and those that cause additional wear and tear on landing gear/tires can increase costs. Smaller jets can accomplish longer flight with fuel stops, but these can affect timing and cost.
Ninja Tip: Flight time is how most costs are broken down by operators. They offer flights with an hourly rate based on the aircraft type and model. The length of flight hours for each leg factors in their maintenance costs, fuel, and other expenses related to aircraft ownership and flight usage. Understandably, the longer the flight, the more expensive the cost(s). - Fuel Costs: Fuel has always been a significant expense for private jet operators. Fuel prices often fluctuate, and the amount of fuel required depends on the aircraft's size, distance, and route. Operators may pass these costs on to customers. Keep in mind that any world event or extreme conditions can also raise fuel prices without notice.
Ninja Tip: The gas prices for our cars are a great example of how events, logistics, and usage demand affect the daily cost of fuel. Private aircraft are no different. The operator costs for fuel are a factor that changes constantly and it’s simply out of their hands. High demand times of year are going to cost more to fly because of this price volatility. - Crew and Maintenance: Pilots, flight attendants, and maintenance staff are necessary for safe and efficient private jet operations. Their salaries, training, and ongoing maintenance of the aircraft all contribute to the overall cost. The people responsible for the safe operation of the aircraft are paramount to retaining the Argus & Wyvern ratings for Part 135 aircraft. Retaining good flight personnel is critical and that means greater expenses to the operator. This is not a place you want to skimp on costs.
Ninja Tip: Longer flights often require another pilot to take over once the primary crew’s flight hours are exhausted. Overnight stays will also increase your costs more than before for the same reason hotel prices are higher. Keep this in mind when you book a round-trip with multiple days of layover. - Airport Fees: Landing fees, parking fees, transfer fees, and other airport-related costs can vary significantly from one location to another. Some airports have higher fees for private aircraft, which can affect the total cost. These fees also increased after COVID to help recoup lost revenue. It is a fact that the world has seen everywhere – so expect it to have logical increases in private airport operations at FBOs.
Ninja Tip: It is worthwhile to check nearby airports (FBOs) to shop their airport fees and costs before chartering your private jet travel. Many FBOs have varying fees that can be compared against your flight requirements. Keep in mind that driving a short distance using ground transportation could save hundreds in airport fees by using an alternate, close FBO. Ask your charter broker for FBO options to save money. - Handling and Ground Services: Ground services, such as aircraft handling, customs, catering, and ground transportation, can add to the overall cost of the flight. These services may be more expensive at certain airports or for specific requests.
Ninja Tip: Again, educating your broker on your specific flight requirements for each trip can help them plan an intelligent ground experience at minimal costs. - Seasonal and Peak Demand: This is important enough to state it as its own item. Like commercial airlines, private jet charter prices will be influenced by seasonal demand and peak travel times. The limited availability of private jets will mean that a demand bump during special times of year will have a corresponding jump in flight costs. Prices may be higher during holidays, special events, or peak travel seasons.
Ninja Tip: Comparing what it cost to fly in mid-October to flying at Christmas is like comparing apples and oranges. Welcome to a Capitalist Economic Model - the higher demand results in more people requesting flights from lower stock. Expect to pay more and book sooner to secure an aircraft to travel anywhere during these times. - In-Flight Services and Amenities: The level of in-flight services and amenities can significantly affect the cost. Many private jet travelers expect and deserve opulent luxury amenities like fine dining, premium beverages, and customized services, but it stands to reason that a steak dinner with a fine wine will cost more than a sandwich and soda. This also relates to premium flight attendants and luxury in-flight entertainment avionics. The most luxury, comfort, and service you want – expect it will come at a higher price these days – just like everything else in the world.
Ninja Tip: For many of the items we have already covered, costs for high-end, premium in-flight amenities are part of the luxury experience. Those that want them often are not surprised by the added cost to upgrade the experience. such as retaining great personnel and maintaining premium aircraft interiors and avionics. - Membership or Subscription Programs: Some private jet charter companies offer membership or subscription programs that can provide access to reduced rates for members. This can be a members-only program or even come as a premium Jet Card Program that offers similar benefits.
Ninja Tip: These programs may have initiation fees or ongoing membership costs that can affect the final cost of a trip, but those are always known in advance.
There are other less significant factors, of course. Our goal here is to inform you of the myriad main factors that determine today's cost and why many of them have risen in our current world economy. When someone asks, "Why are my flight more expensive than when I flew a few years ago?," the answer may be simple, but understanding why costs rise can be daunting to explain. Rest assured, the changes are not some magical, unknown force at work in the world. Each cost is determined by the world economy and market demands. It affects private jet travels as much as it does the price of gas for your automobile or the cost of groceries. These changing factors are undeniable and affect our daily life on every level.
Ballpark Cost Comparison: Private Jet vs. 1st Class
It's important to understand that private jet travel is a choice and is often preferred for its exclusivity and privacy. The cost, while significantly more expensive than commercial airline travel first-class tickets is determined by a personal preference over economy. The current comparison by a recent TheTravel.com article shows the comparison:
- The hourly cost of chartering a private jet: $1,300 - $3,000 for low-cost jets, $3,000-$5,500 for mid-sized jets and super-sized jets, and $6,000-$10,000 for a large private jet.
- The cost of flying first class for domestic flights in the U.S.: $1,300+
- The cost of first-class plane tickets for international flights: $5,000-$15,000+
Private Flight Costs: Conclusion
All jet travel has increased in cost. The benefits of private jet travel vs. commercial travel are unmistakable. The purpose of this blog was not to debate which is better, but simply to explain the costs associated with flying in a private jet and why those costs have risen dramatically in recent years. Obviously, the costs can vary widely depending on all of the factors discussed above, but also are greatly affected by personal preference factors. Before you charter your next flight, it's advisable to obtain detailed quotes from multiple private jet charter companies and consider your specific needs and preferences when deciding. An informed flyer is our best client!
Lincoln is determined to earn your business on every flight. Allow us to be your second opinion and we’ll quote your next trip quickly with our dedicated Aviation Advisors to ensure your needs are not only met, but exceeded. We’ll beat competitive quotes and show you what makes the “Lincoln Experience” a true game-changer! Call 844-463-7538 today or contact us here.