JetBlue will open its first-ever crew base outside of the continental United States in Puerto Rico, further cementing the airline’s expansion plans on the island.
10.05.2024 - 21:35 / forbes.com / Richard Aboulafia
Last night, I returned home to Miami after spending a bit longer than I had anticipated in San Diego, where I had been attending the Spring meeting of the International Aircraft Dealers Association, also known as IADA. In fact, I wasn’t supposed to be at home today.
I was supposed to be visiting my father, who lives in what the airlines call a spoke city. In other words, to get there, you must change flights at one of their hubs.
Thanks to American Airlines, it didn't work out that way, which is as good a segue as any into why private aviation is likely to be more relevant than ever for those who can afford it, emphasis on afford.
So how is business in the world of private jets?
After the pandemic led demand spike, is the industry headed up, down, or somewhere in between?
Managing Director of AeroDynamic Advisory Richard Aboulafia, who has been tracking aviation for more than 30 years, calls it "one of the more confusing market cycles I've seen."
The IADA dealers, who operate like real estate agents for consumers and corporations who want to buy private aircraft, particularly preowned ones, are naturally optimistic.
The group's members, who represent about 50% of preowned transactions globally, saw a 5.9% year-over-year increase in sales, with 253 closings in the first quarter of 2024.
Like their brethren in the property market, brokers need something to sell, something that was lacking as inventory hit record lows during 2022.
Rollie Vincent of Rolland Vincent Associates, an industry analyst and former manufacturer and fractional executive, said while inventories are still well below their 10-year averages, they have rebounded from substantially from those low points (image below).
Back then, buyers eschewed standards such as pre-buy inspections, which were more difficult due to pandemic restrictions, and simply wired millions of dollars to buy used private jets based on pictures. Many deals were made before aircraft were even listed.
As I wrote last year, even as the bloom was off the rose, aircraft owners saw the benefits in being discreet, concerned their pilots would leave before they could sell their jets.
Today, the outlook is bifurcated.
Vincent surveys over 500 flight departments and users quarterly. His research shows a diminished, slightly negative sentiment over the past eight quarters from North American respondents who represent the industry's largest market of buyers.
Vincent told the audience that their outlook coincides with lower U.S. consumer and business confidence and a shift in the Federal Reserve's approach to interest rates, "that money should cost money."
At the same time, Aboulafia's research paints a different picture.
He says the industry is constrained not by demand but by
JetBlue will open its first-ever crew base outside of the continental United States in Puerto Rico, further cementing the airline’s expansion plans on the island.
It's still not entirely clear when American Airlines might receive or launch its first Airbus A321XLR aircraft — a single-aisle jet that promises to give it (and its competitors) new flexibility to fly to Europe.
Among the myriad of travel perks that can help you save money or enjoy complimentary upgrades, loyalty program membership stands out as a significant one. The second annual Barclays US Consumer Bank’s Travel Rewards and Loyalty Reports delve deep into the loyalty programs and benefits that are most frequently used by travelers, shedding light on their importance in the travel landscape.
While summer kicks off, customers can get a head start on planning to get away this winter with more options to visit the Caribbean and Latin America with American Airlines. In winter 2024, American will enhance its industry-leading short-haul international network with eight new routes and increased service, offering flights to more destinations than any other U.S. carrier in the region. “Customers will have more reasons to choose American than ever before for nonstop fun in the sun this year,” said Brian Znotins, American’s Senior Vice President of Network and Schedule Planning. “We are excited to continue growing our network to the region with more flights this winter to the Caribbean and Latin America than any other U.S. carrier ever.”
It may have been lightly raining on my final descent into Edinburgh, but the hint of gloomy weather couldn’t dim my excitement on this milestone journey across the pond.
JetBlue is planning a sprawling new partnership with British Airways, through which the two airlines would link significant parts of their networks across the U.S. and Europe.
The bidding has begun. Several airlines are throwing their hat into the ring, hoping to win the right to operate more long-distance flights from Ronald Reagan Washington National Airport (DCA).
Amid the departure gates, terminals, Hudson News stores, and airline lounges at airports lies a hidden language, recognizable to frequent travelers and aviation enthusiasts alike: the three-letter airport code.
Private aviation, despite its detractors, is the engine that drives business. In fact, Dublin Airport authorities recently dropped plans to limit private jets after corporate users said it would cause them to halt Irish expansion plans. Equally important, private aviation plays a critical role as a time machine for leisure flyers. UHNWs regularly jet between homes and vacation spots. However, flying privately also benefits occasional users.
American Airlines is getting even bigger in the Caribbean and Latin America.
J.D. Power just released its 2024 North America Airline Satisfaction Study, and while some airlines shone, others are clearly not prioritizing customer service. As domestic air travel continues to rise (with passenger volume increasing by 9.4% compared to the previous year) airlines find it challenging to maintain customer satisfaction amid crowded gates, overflowing overhead bins and rising ticket prices. However, the J.D. Power 2024 North America Airline Satisfaction Study, released on May 8, shows that some airlines are responding to these challenges by focusing heavily on staff training and doing what they can to improve the overall flight experience through friendly and attentive service. These efforts are paying off, allowing some airlines to deliver exceptional customer experiences despite the growing number of travelers.
JetBlue is making major changes to its network for this summer and fall following the U.S. government’s breakup of its planned merger with Spirit Airlines earlier this year.