Record business jet arrivals at Paris Olympics help private travel market recovery

Business jet activity in France rose 17% year-on-year for the week ending July 28

A Gulfstream G550 jet comes in to land with a Bombardier CRJ900 jet in the fire ground at an airshow. The Olympics drew a record number of private jet flights to France. Reuters

A record number of business jet arrivals at the 2024 Paris Olympics is helping the private travel market recover from a relatively weak first half of the year as elite athletes, government officials and corporate executives descended on the sporting event in France.

The business jet market´s bright spot this summer is Europe, with the Olympics drawing record numbers of private jet flights to France, while the UK also recording an influx of sports fans into the region, as the sports event creates “bumper demand” for private jet travel, aviation consultancy WingX said in an August 7 report.

In the week of July 22 to July 28, business jet activity in France rose 17 per cent compared to the same week last year, while Europe recorded a 4 per cent increase and the UK posted a 10 per cent jump, according to data from aviation consultancy WingX.

Paris had a 58 per cent year-on-year jump in business jet arrivals during the week, with the Paris Le Bourget airport recording 713 business jet arrivals during the seven days.

“The Olympics venues have attracted business jet arrivals from all over the world as dignitaries, heads of corporations and celebrities flocked to the opening ceremony and sporting events,” the company said in its report.

“The Olympics bounce is helping the market recover from a relatively weak H124 [first half], with year-to-date trends now flat com pared to last year.”

The Olympics are very popular with US visitors, with many coming through the UK, giving the market a boost from the flat growth compared to the first six months of 2023, it said.

In the week ending July 28, trans-Atlantic business jet activity got an Olympics-related boost with business jet flights from New York airports into Paris airports jumping 400 per cent year-on-year.

“Paris, where most of the Olympic events are being held, was the top destination city across all US to France connections. Vista Jet and NetJets lead US to France flights last week,” the report said.

Sports tourism is growing globally and represents a growth opportunity for private jet travel companies, according to industry reports.

Victor, a global on-demand jet charter platform that has moved its headquarters to Abu Dhabi after its acquisition by Abu Dhabi Investment Group, said that the sports and corporate segments continue to be its strongest performers in the first half of 2024.

The sports and corporate segments represented 50 per cent and 34 per cent of its bookings respectively during the first half of 2024, with the remaining bookings coming from music clientele and leisure groups.

“Despite a slight softening in the market for the first half of 2024 year-on-year, Victor has capitalised on positive regional market trends driven by global sporting events and peak season luxury destinations – such as the key hotspots in the Mediterranean,” Simon D’Oyly, general manager of Victor Middle East and North Africa, told The National.

“The movement of our strategic headquarters to Abu Dhabi has also enabled our team to take advantage of the positive uplifts we are seeing from our members in the Mena region – in particular for summer escapes from the Gulf to Europe.”

Victor has recorded a “marked increase” in the number of mid-size, heavy, and ultra-long-range aircraft being chartered through its platform.

“This is partly due to residents in the UAE looking to enjoy the various sporting events taking place in Europe this summer,” it said.

Industry performance

Global business jet activity in the first half of 2024 declined 2 per cent year-on-year, according to WingX data. From January through to June, the global business jet fleet flew 2.98 million flight hours, 2 per cent below than the same period last year.

The use of private jets peaked during the Covid pandemic after the disruption of commercial flights with the influx of new users as first-class and business-class travellers opted to take chartered flights. Private jet companies registered an increase in demand in 2021 and 2022 as wealthy travellers sought to avoid crowds and find alternatives to commercial flights.

However, private flight activity dropped 3 per cent year-on-year last year, representing a “market reset which followed the frothy demand during the pandemic era,” according to WingX.

Demand dropped the most in Europe, where business jet activity last year declined 7 per cent from the year before, as the Ukraine war compounded the effects of economic stagnation, the consultancy said.

The business jet sales market also shrank last year as aircraft manufacturers continued to deal with supply chain bottlenecks and labour shortages and as the pre-owned jet market “continued to normalise from a historically strong 2021,” according to Global Jet Capital’s fourth annual business jet market outlook report. Global Jet Capital is a provider of financing for the private aircraft market.

Industry forecast

“Despite some headwinds in 2024, the business jet market remains resilient, and we forecast steady growth over the next five years,” the report said.

Total new and pre-owned business jet transaction unit volume is forecast to increase 5.3 per cent in 2024 as plane makers increase production to meet large backlogs and as the pre-owned business jet market continues to grow in the long term, it said.

New jet deliveries are forecast to increase 9.4 per cent in 2024 and grow at an average annual rate of 3.2 per cent over the next five years, according to Global Jet Capital.

Deliveries will likely peak in 2027, followed by a slight dip in 2028 as backlogs normalise.

Looking ahead into 2024, DC Aviation Al-Futtaim VIP Terminal, a joint venture between Germany-based business jet operator DC Aviation GmbH and Dubai-based conglomerate Al-Futtaim, expects growth this year to be driven by major global events and expansion into emerging markets.

High-profile international conferences, sports tournaments and cultural festivals are expected to drive demand for charter flights, while emerging markets with growing economies and high-net-worth individuals, such as parts of Asia, Africa, and Latin America, could provide “significant growth potential, Paul James, director of sales and aircraft management at DC Aviation Al-Futtaim VIP Terminal, told The National.

However, geopolitical tensions such as the wars in Gaza and Ukraine pose “substantial uncertainties” as they can lead to airspace restrictions, complicated flight routes and increasing operational risks, he said. Additionally, insurance premiums may rise due to heightened risks associated with these regions.

Moreover, there may be increased scrutiny and potential regulatory changes affecting the private aviation industry in response to these geopolitical threats, he said.

“While there are promising indicators for growth driven by major events and market expansions, private and business jet operators must navigate a complex landscape of geopolitical and macroeconomic challenges,” Mr James said.

DCAF is “well positioned” for growth by focusing on new market opportunities and maintaining operational flexibility, he said.

Sports tourism boom

The Paris 2024 Olympic Games kicked off on July 26 with some 11 million travellers from across the globe expected to visit the French capital to witness the sporting events and see the sights in the City of Lights.

Overall, sports tourism is growing worldwide and is expected to almost double in value to $1.33 trillion in the next eight years by 2032, from $564.7 billion in 2023, according to a July research report by Collinson International, which owns Priority Pass and LoungeKey airport lounges around the world.

The research report, titled The Value of Sports and Music Tourism, surveyed 8,537 travellers from 17 countries.

Of those that travel to an event by plane, more than four in five (83 per cent) have travelled for sports in the past three years or plan to do so in the coming 12 months, the report said. The travel for sports events includes football matches, basketball games, the Olympics, F1 races or tennis tournaments.

Sports tourists spend heavily, with 51 per cent exceeding $500 per trip per person on flights and other expenses, not including the event tickets.

Sports tourism is booming and “event travellers have high aspirations, presenting a huge opportunity for businesses to tap into this growing segment of travellers”, the report said.