Despite High Oil Prices, US Demand for 'Gold Spoon' Private Jets Surges... "Top 1% Unaffected by Inflation"

Increased Demand for Private Jets Due to Pandemic Infection Concerns
Private Jet Usage Up 14% Compared to 2019

Private jet of pro boxer Floyd Mayweather Jr. (Photo by Mayweather Facebook)

[Asia Economy Reporter Jeon Jinyoung] As COVID-19 has transitioned into an endemic phase, airlines have resumed their routes, but it has been found that the number of American "gold spoons" who do not use airline flights and instead take their own private jets is increasing. Customers who used private jets during the COVID-19 period due to concerns about infection have not returned to airlines even after the transition to endemic.

According to the Financial Times (FT) on the 10th (local time), the U.S. private jet industry is experiencing a boom due to strong bookings. In the case of private jet company Wheels Up, company revenue jumped 39% compared to the previous year. A Flexjet representative stated, "Last month’s winter holiday season was the busiest in history," and an EvoJets representative said, "Competition for bookings started two months earlier than usual for holiday private jet reservations."

Not only personal use but also business use of private jets has increased. According to aviation data company WingX, overseas flights of business-use private jets increased by 10% last year compared to the previous year. This is a 14% increase compared to before the pandemic in 2019. Richard Koe, CEO of WingX, said, "Demand for private jets has increased record-high over the past two years."

This appears to be because the demand for private jets, which increased during the pandemic, is still continuing. FT analyzed, "Private jet bookings began to accelerate from 2020, and it seems that wealthy individuals and business travelers used private jets to avoid airline congestion and COVID-19 restrictions, which had a significant impact." Despite concerns that carbon emissions per private aircraft passenger are much higher than those of commercial airplanes or trains, the popularity of private jets remains strong.

Although global inflation has driven up fuel and related costs, the "private jet craze" among the wealthy is unlikely to subside easily for the time being. Honeywell, an aviation company, reported, "Three-quarters of private jet flyers are expected to fly about the same number of times this year as during the pandemic season, with only 4% expecting to reduce their flights."

Kevin Singh, president of Icarus Jets, a private jet brokerage, also added, "Inflation has not affected the top 1%."