JP Morgan predicts private jet delivery rise in 2014

A private jet at Van Nuys Airport in Los Angeles (Photo: Nick Gleis).

JP Morgan predicts a 10% gain on the number of new private jets delivered in 2014.

A private jet at Van Nuys Airport in Los Angeles (Photo: Nick Gleis).

US-based asset management and investment company JP Morgan is predicting that 2014 will see a rise in private jet delivery numbers, although overall percentage gains will be less than 10 per cent.

In its monthly research note for December 2013, the company looked back over deliveries across the year, estimating that the industry delivered less than 650 aircraft for the whole of 2013. This represents the lowest number of new private jet deliveries for nine years and a 43 per cent decline over the last five year period.

The company does, however, see this as the bottom of the curve and has predicted that 2014 will see a rise in deliveries, largely due to new and upgraded platforms. However, the company also states that the path to recovery is unclear and points towards standard economic indicators like GDP growth, falling used jet inventories and a rise in US flight hours.

December 2013, the company says, saw a used inventory decline across all OEMs, with price declines more pronounced among heavier jets. JP Morgan views price stabilisation as an important condition for a recovery and notes that this could be a positive signal that should bring the used market toward equilibrium.

Corporate Jet Investor’s editor Alasdair Whyte is also predicting a recovery for the business jet market in 2014.