HONEYWELL FORECAST SHOWS DEMAND FOR NEW BUSINESS JETS AT RECORD LEVELS, CONTINUED GROWTH EXPECTED FOR NEXT DECADE

Core Insights - Honeywell's 34th annual Global Business Aviation Outlook forecasts a record 8,500 new business jet deliveries valued at $283 billion over the next decade, marking the highest projections in the report's history [2][6][12] Industry Trends - The business aviation sector is experiencing strong demand driven by economic growth, fractional ownership, and ongoing aircraft development, with an average annual growth rate of 3% expected [2][3][6] - 91% of surveyed operators plan to maintain or increase their flight hours in 2026 compared to 2025, indicating robust confidence in the market [7] Delivery Projections - New business jet deliveries in 2026 are anticipated to be 5% higher than in 2025, with a consistent annual growth rate of 3% projected over the next decade [7] - North America is expected to receive approximately 70% of new jet deliveries in the next three years, supported by favorable regulatory changes and a significant portion of operators having firm orders [8] Purchase Drivers - Performance remains the top criterion for aircraft purchases, with 89% of respondents prioritizing it, while cost is a secondary concern at 56% [7][9] - The demand for fractional ownership is a key growth driver, with fractional fleets increasing by over 65% since 2019 [7][10] Sustainability Efforts - Operators are increasingly focused on sustainability, with 60% acquiring more fuel-efficient aircraft and 56% utilizing sustainable aviation fuel (SAF) [10][18] - The return of 100% bonus depreciation is expected to stimulate additional business aircraft purchases, as it allows significant tax deductions for new aircraft [7][10] Regional Insights - Europe is projected to receive about 14% of new jet deliveries, with a higher percentage of operators having firm orders compared to the global average [8] - Latin America is expected to account for 7% of global new jet deliveries, with operators in the region showing optimism about flight activity growth [8] Operator Sentiment - 28% of operators plan to increase their flight activity next year, while 64% expect to maintain the same level of operations [10] - The survey indicates a strong sentiment among operators regarding future flight activity, with nearly 90% planning to fly the same or more hours [8][10]