Air Charter Services Market

Air Charter Services Market Outlook (2023 to 2033)

The air charter services market is expected to be worth US$ 31.9 billion by the end of 2023 and is projected to rise with a CAGR of 5.4% to reach a valuation of US$ 54.0 billion by 2033.

In 2022, the global air charter services market was valued at US$ 30.3 billion, which is around ~6% of the global airline industry.

Report Attributes	Details
Air Charter Services Market Size (2022A)	US$ 30.3 Billion
Estimated Market Value (2023E)	US$ 31.9 Billion
Forecasted Market Value (2033F)	US$ 54.0 Billion
Global Market Growth Rate (2023 to 2033)	~5.4% CAGR
North America Market Share (2022)	~44.0%
East Asia Market Growth Rate (2023 to 2033)	~6.5% CAGR
United States Market Growth Rate (2023 to 2033)	~5.5% CAGR
Key Companies Profiled	Air Charter Service India Pvt. Ltd.; Gama Aviation; Air Partner; NetJets; Asia Jet Sdn Bhd; ASIAN SKY GROUP; BlueStar Air Services; European Air Charter; Flexjet LLC; GlobeAir AG; Jet Aviation AG; Luxaviation S.A.; PrivateFly Ltd.; Solairus Aviation; VistaJet Group Holding Ltd.; Wheels Up Partners LLC

Burgeoning demand of air charter services from commercial sector

The ability of the charter plane to travel as per customer schedule, access to thousands of airports, and offering customized services will exhibit the demand for air charter services from the commercial sector. Hard-to-reach destinations in a given time could easily be achieved by the customers by opting air charter services.

Moreover, with the globalization of business worldwide, demand for group charters will be highly in demand in the commercial sector to offer quicker and timely access to the destination. The access to thousands of airports will make corporate professionals reach the closer location of their office by avoiding multiple long routes in commercial flights.

• Short Term (2023 Q1-2026): Post COVID-19, demand for air charter services has grown substantially among the customer who has better disposable income as they opt for safe travel practise and avoiding infectious diseases.
• Medium Term (2026 to 2029): Growing popularity of air cargo services worldwide and development in the e-commerce sector will be the leading factor attributing to the demand for air charter services worldwide.
• Long Term (2029 to 2033): With businesses gaining global exposure, demand for air charter services will be highly in demand from the corporate sector. Air charter services provide customized service, keeping consumer interest in the concern. Owing to this factor, these services will be highly in demand among people traveling for business operations.

North America and Europe to exhibit a leading share in the global air charter services market. Together these region holds more than 60% of share of the market.

The above image depicts the market share analysis of the global air charter services market based on application and region. The total addressable market value during 2023 is expected to be US$ 31.9 billion.

Factors driving the demand for Air Charter Services Market

“Growing demand for cargo charter services”

The demand for air charter services is growing due to the difficulty in the shipment of oversized and difficult-to-fit products in standard logistics containers and aircraft used by air cargo operators. This is resulting in demand for cargo charter services worldwide. Additionally, the air charter services are time and cost-efficient and provide easy and fast cargo delivery.

With the significant development of the e-commerce sector, demand for air charter services has grown. As cargo charter services are proving to be beneficial for the e-commerce sector to efficiently serve the global market and act as a promising option to fill the sudden demand for goods across the border. Owing to this factor, demand for air charter services has grown significantly across the globe.

“Customer-focused and customized service offering by market players”

Air charter services could be easily accessed by the customer remotely at any time with the use of online booking services and access to the internet. By just choosing or inputting a few necessary data regarding the route, like the departure and arrival location and times, the day of the flight, and the number of passengers, consumers may quickly and easily book a private jet on these online platforms.

For instance, companies for air charter booking like PrivateFly and BookMyCharters have completely transformed the way private jets are reserved, making the process as simple as calling a cab online.

In addition, these portals provide additional information and tools for rapid bookings so that customers may make the best choice possible without the need for a middleman.

Key factor impeding the market growth

“High cost of air charter services and absence of skilled pilot”

Most of the air charter service providers have aircraft which run on fuel. Increasing prices of fuel will ultimately be transferred onto the customer while availing of air charter services, which hold about one-fourth of the total cost of air charter services. This might become a major factor that will hamper the demand for air charter services.

Additionally, the dearth of skilled pilots to operate aircraft might affect the market growth. As per Federal Aviation Administration, US, every year about 5,773 pilots are hitting the age of 65 in comparison to which hiring new pilot is low. Post-COVID-19, the aviation sector faced about 62% of shortage qualified pilots. This factor is likely to hamper the smooth operation, resulting in decreased revenue for air charter service providers.

Country-wise Insights

United States to hold largest share in North America region

The growing disposable income of the people in the economy is one of the leading factors attributing to the demand for air charter services in the country. Since, air charter services offer more access and flexibility to the customer than any other commercial airline, which attracts the focus of customers with good disposable income to travel as per their convenience.

Also, air charter services offer a sense of luxury to the customer with excessive comfort with negligible restrictions on carrying cargo and passengers. Due to this people with good disposable income are witnessed inclining towards air charter services.

Whereas, the United States is captured with various corporate offices and businesses having trade operations across the globe. Air charter services will be helpful in the trade operation of this business by offering customized cargo charter services to the businesses.

Chinese air charter services to grow with the highest CAGR

As businesses in China embrace more cost-effective travel policies for their high-flying leaders, demand for chartered private planes is skyrocketing. Demand for corporate jets has increased as a result of Chinese businesses' quick entry into foreign markets and their appeal as status symbols and modes of transportation.

However, many businesses have sold off their private planes and switched to more affordable charter jets as they become aware of their high cost of ownership as the economy slows down. Additionally, after 2020, business travel in China will change as a result of the country's economic recovery, leading to a rapid increase in the usage of private aircraft by rich corporations and people.

People with good disposable income have chosen charter plans to protect themselves from contracting the virus, in contrast to the quick outbreak of COVID-19.

Category-wise Insights

Group Charter to exhibit leading share in Air Charter Services Market

Group charter is the fastest, and most convenient travel option for corporate, sports, touring rock bands, and other groups of people. As it moves multiple people without the struggle of a mercantile flight at working at airports. The flight schedule for group air charters is malleable and tailored to their needs by providing the most advantageous departure and destination airports.

With the rising popularity of business events, sports events, and corporate travel worldwide, demand for group charter services is witnessed a significant rise. Additionally, it provides the operating authorities of these end-users complete control over their ongoing travel in comparison with scheduled services.

Business/Corporate holds the largest share in the end-user segment

Air charter services are beneficial for business and corporate trips as they can land in more airports than commercial airlines which offers passengers to reach a location that is close to their office and the destination they want to reach. Business or corporate employees avoid bondage with time and prefer to reach their destination by taking minimum time, therefore air charter services are highly in demand among them to travel with shorter and faster routes which generally commercial airlines do not offer.

These plans are specifically designed for the corporate customer with the advent of advanced technologies like Wi-Fi and other to accomplish business work while traveling. Owing to all these offering air charter services is in high demand from business/corporate sectors.

Competitive Landscape

Key market players offering air charter services are Air Charter Service India Pvt. Ltd., Gama Aviation, Air Partner, NetJets, Asia Jet Sdn Bhd, ASIAN SKY GROUP, BlueStar Air Services,European Air Charter, Flexjet LLC, GlobeAir AG, Jet Aviation AG, Luxaviation S.A., PrivateFly Ltd., Solairus Aviation, VistaJet Group Holding Ltd. and Wheels Up Partners LLC.

The market is highly fragmented with the presence of various large and small market players in the industry. These market players are taking favorable initiatives to establish their market presence worldwide and expand their service offerings.

For instance :

• In September 2022, Air Charter Service, a leading aircraft charter specialist announced the consolidation of its specialist urgent cargo products under a sub-brand called ACS time critical. Through this initiative, the company will offer go-now cargo aircraft charter services to the customer and provide door-to-door service to their client's urgent shipments.
• In December 2022, EaseMyTrip has announced the acquisition of air charter service provider Nutana Aviation.

Fact.MR has provided detailed information about the provider of air charter services market positioned across regions, revenue growth, and service offering expansion, in the recently published report.

Segmentation of the Air Charter Services Market :

• By Application:

  • Private Charter
  • Group Charter
  • Cargo Charter

• By End-User:

  • Business/Corporates
  • Individuals

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa