Core Insights - Demand for private jets is increasing significantly, with Honeywell forecasting a record number of new business jet deliveries over the next decade despite economic uncertainties [1][2]. Group 1: Market Outlook - Honeywell's 34th annual Global Business Aviation Outlook estimates 8,500 new business jet deliveries worth $283 billion over the next 10 years, marking the highest total in its 34-year history [2]. - The average annual growth rate for business jet deliveries is projected at 3% [2]. - 20% of global operators surveyed reported having at least one aircraft on firm order, an increase from 17% the previous year [5]. Group 2: Factors Driving Demand - Recent economic growth, rising demand for fractional ownership, and ongoing advancements in aircraft technology are contributing to record levels of demand in business aviation [3]. - The restoration of 100% bonus depreciation under the One Big Beautiful Bill Act has spurred purchase activity, allowing businesses to write off the full cost of aircraft in the year they are put into service [8][9]. Group 3: Industry Response - Manufacturers are ramping up production to meet the growing demand, as operators increase their usage rates [5]. - Companies like Stella Jets have reported a surge in clients seeking new purchases following the tax rule restoration, indicating a strong market response [9][10]. Group 4: Demand Trends - Overall demand for private aviation is on the rise, with expectations for continued growth [10][11]. - Some industry experts believe that actual demand for new deliveries may exceed Honeywell's projections, based on observed increases in charter demand [11][13].

Tax Law Impact on Private Jet Industry - New tax law allows immediate write-off of the entire purchase price of private jets, known as bonus depreciation [1] - Bonus depreciation, originally passed in 2017, was brought back, enabling companies to write off 100% of the purchase price of capital equipment, including private jets used for business [1] - The full purchase price of a private jet can be written off on taxes in the year of purchase, retroactive to January of this year [2][3] Conditions and Implications - The jet must be used for qualified business activities, not personal use [2] - The benefit applies to both new and pre-owned planes [2] - For example, a $10 million Gulfstream purchase can deduct the entire $10 million from taxable income [3] Market Outlook - Brokers anticipate a demand spike starting in September due to the tax change [4] - The private jet industry had been slowing after peak demand [3]