Steve VarsanoFounder at The Jet Business

Current market conditions in corporate aviation.

Name: Current market conditions in corporate aviation.
Uploaded: 2023-08-11T16:43:52+00:00
Duration: 58 s
Channel: Steve Varsano
Description: In a brief interview, Steve Varsano refutes a recent report claiming private jet sales will peak next year, stating instead that the market likely…

11 Aug 2023 · 1 min

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In a brief interview, Steve Varsano refutes a recent report claiming private jet sales will peak next year, stating instead that the market likely reached its peak about six months ago. He attributes the recent slowdown to a combination of macro‑economic headwinds—recession fears in Europe and the United States, recent bank failures, and a divergent stock market where only a handful of large‑cap stocks have recovered while smaller companies have suffered steep declines. Varsano also notes that private‑equity activity has become “really, really quiet,” and that privately‑held aviation firms, which previously chased revenue growth at all costs, are now being forced to prioritize profitability, cut back on investments, and generally take a breather.

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Private jet sales are going to hit their peak next year. Do you expect the demand to remain?
If you got that report just the other day, maybe it was delivered to you by horse, because that information is old and it's not true. The industry probably hit its peak, I'd probably say, 6 months ago. It started slowing down a little bit around the world, and the threat of a European and a US recession coming. You see these bank failures now are giving people cause for, you know, holding back. I think there's a multitude of stocks. Okay, you start seeing the 5 or 10 big-name stocks have jumped back up, but most of the little people, little companies have really had drastic drops in the last 6 months in the stock market. Private equity markets have gotten really, really quiet, and the companies who are private, you know, were always jumping and going after revenue, revenue, revenue, and now they're saying, hey, go find a way to make profits. They're cutting back on their investments, and just a lot of the world is just taking a breather.