Charter rates have been climbing across much of the market, particularly for heavy and ultra-long-range jets where demand has skyrocketed. But pricing shifts are not universal and some markets have remained stable, depending on demand and fleet availability. In this article we look at what is driving the rise, and in our July edition we hear how to deal with it.

“After 22 years in private aviation, I’ve seen a lot: booms, downturns and shifts in how people fly privately,” says Florida-based Exclusive Charter Service president and founder Jason Johnson. “And if there’s one thing I’ve learned it’s that private aviation is constantly evolving. And yes, prices are rising.”

In Europe, LunaJets CEO Guillaume Launay notes that prices rose between 2023 and 2024, but not for very light jets. Here the decline was partly due to the growing presence of turboprops, which have gained traction because they offer more competitive hourly rates and superior landing performance.

RentAviator CEO Marcos Cortez saw the sharpest charter price rise in ultra-long-range jets and large cabin aircraft due to increased transatlantic and intercontinental demand. Light jets and turboprop prices were more stable, though not immune to inflationary pressures.

Price hikes make clients nervous

With rising costs comes the challenge for brokers of keeping clients engaged. “A key frustration we encounter is from clients who have been flying the same route consistently but are now seeing a hike in price for the same aircraft type,” says Equinox Charter MD Elliot Bottomley. “These cost jumps far exceed the general rate of inflation across Europe, making it difficult to justify the increases purely from an economic standpoint. As brokers, we find ourselves in a rather awkward position, striking a balance between securing the best value for our clients while maintaining decent relationships with operators who are navigating their own financial pressures.”

One of the most powerful tools for establishing and maintaining trust with clients is pricing transparency. “It’s clear that many clients, particularly those who frequently shop, have concerns over hidden markups,” Bottomley continues. “Arguably, if they trusted brokers to offer fair pricing, they wouldn’t feel the need to shop for the same aircraft in the same marketplace.”

Not so in Dubai …

The Dubai market, however, has become highly competitive. “A surge in brokers, estimated to be in the hundreds, has intensified price competition, making it harder for operators to maintain rates,” says UAS director of charter Philip Du Preez. The influx of business jets based in Dubai has also led to downward pricing pressure, particularly on long range aircraft, and more availability. Operators with multiple aircraft are quoting on a ‘floating fleet’ basis, eliminating repositioning costs on one-way flights. Brokers secure a flight using an operator quote, then go to another operator to see if they can negotiate the price down to increase their margin.

“Dubai is an outlier compared to global markets,” Du Preez concludes. “While international demand keeps prices stable or rising, Dubai’s oversupply and broker-driven price sensitivity are pushing margins down. Operators with owned fleets can be more flexible, but for single-aircraft operators or management companies, margins are under significant pressure.”

The key price drivers

Prices depend largely on the cost of maintenance, spare parts, hangarage and insurance and, of course, on fuel, a significant factor particularly in regions like India. Enthral Aviation director Tapish Khivensra notes that costs there are among the highest globally. Amit Dutta, MD at Hunch Mobility, adds that the slow pace of aircraft procurement and registration there adds to pricing pressures, and regulatory barriers and high import duties hinder fleet expansion, which in turn exacerbates supply shortages. Strict safety protocols and periodic maintenance inspections further increase operational costs.

Globally, another factor is the rising cost of pilots and crew. Demand for skilled aviation professionals has surged as commercial airlines aggressively recruit post-COVID, leading to higher salaries and training expenses. And then evolving regulations, taxes, insurance premiums and airport fees cause further inflation. Many countries are introducing new passenger taxes and sustainability levies, while airports are adjusting pricing models and adding environmental charges, all creating further unpredictability. Aircraft servicing has become more expensive due to supply chain disruptions and geopolitical instability affecting parts availability. All these factors directly increase owners’ operating costs, influencing their charter return expectations.

“The increase in charter costs may be directly related to an increase in any of the aforementioned factors, or simply due to poor aircraft management in the past, forcing the operator to increase the mileage rate to cover unforeseen costs,” argues Starfly founder Juan Carbone. In Argentina, where he operates, charter prices vary depending on the condition of the aircraft. He says: “The Fairchild Metroliner 23 has a slightly higher value per kilometre than other similar aircraft because it’s the last aircraft of its type to leave the factory.”

Major events are leading to substantial hikes in handling and parking fees. TAG Aviation client support manager Nicole Gurney explains: “During the Las Vegas Grand Prix, operators faced premium pricing just to secure a spot, with fees reaching tens of thousands of dollars. This is a trend we expect it to continue.”

ACC Aviation president, Americas Jamie Harris adds that: “Event fees charged by FBO facilities are impacting both Part 135 and Part 121 operations. To address this, we leverage our network of operators to find pricing opportunities that outweigh the effects of the inflation. Our focus is on ensuring our customers have all the information they need, so our team proactively works with operators to research and communicate these ad hoc costs when flight options are first presented to clients.”

Peak-season demand plays a part too, with holidays, summer travel and prominent international events strongly affecting prices. Kevin Singh, CEO of Icarus Jet explains: “For starters, during the Super Bowl, Art Basel, the Monaco Grand Prix and fashion weeks around the globe, private jet demand goes sky high. This surge in bookings means increased rates, especially for last-minute charters, while the availability of aircraft is down and operators charge accordingly.”

There remains a strong demand for charter post-COVID driven by both HNWIs and corporates, which has put pressure on availability. “With fewer new aircraft entering the market and limited pre-owned inventory, supply constraints persist,” says Javiation president Jeremy Kearns. “And stricter emissions regulations, sustainability initiatives and compliance measures are leading to increased operational expenses, which trickle down to charter pricing.”

Australia-based BLAK director Sam Sargent notes: “Because we started our business in the Pacific basin, a region where aircraft availability is far more restricted than in the US or Europe, we have long been accustomed to navigating higher charter prices due to limited supply. That experience has given us an edge when securing aircraft in tight markets.”

Exchange rate effects

David Mackey, chief flight manager and CEO, FlightCharter in Australia, points out that a significant portion of aircraft operating costs are in US dollars. For countries with weaker domestic currencies, fluctuations in exchange rates add financial pressure. “The depreciation of the Australian dollar against the US dollar has led to a 7.4 per cent increase in operational costs over the past two years,” he says, “And these increased expenses inevitably impact charter pricing as operators adjust service rates to compensate.”

Inflation has risen by 7.3 per cent in Australia, which influences the cost of aircraft maintenance, replacement parts, insurance, staffing and airport fees. “These rising costs eventually get passed on to customers as operators must maintain stringent service quality and safety standards,” he notes.

In the offices of US aircraft management company Trident Aircraft, the charter department manager noted that light jet prices now are what they were charging for a mid just a few years ago. President John Galdieri says: “Inflation is natural, but industry costs are rising everywhere. The labour rate at most MRO facilities is over $200/hour, and insurance rates for commercial aircraft has risen by double-digit percentages for several years in a row. Parts costs are up, parts availability is down. Pilot salaries are up, FBO parking fees are outrageous. Everything is more challenging for the operator so we must charge more for our services.

“Wheels Up has set a precedent where a King Air can charter for almost $5,000/hour, so when they are getting a late model PC-24 or CJ4 for less than that, it seems like a deal. The industry big guys like NetJets, FlexJet and Vista are charging $10,000 or more for a light jet and have a huge client base. I don’t foresee pricing falling in the short or long term.”

Trident doesn’t depend on charter revenue, so when demand goes down it just flies less, whereas some operators will reduce rates to ensure their aircraft continue to fly. Galdieri adds: “I don’t understand why some owners allow their jets to be flown at rates near their direct operating costs, reducing their margin to practically nothing. If you are allowing someone to borrow your multi-million dollar asset and crew, you deserve a fair margin.”

In Europe, airport fees, catering and VIP handling have increased but, with the surges in private jet passenger taxes, price hikes on certain routes are starting to be seen. Jet Members senior flight director Tim Rees says: “Suppose you have a charter flight from Paris to London for four passengers using different categories of aircraft, VLJ to ultra-long range, the additional tax alone could increase the overall charter price by an additional nine to 34 per cent. There is a certain irony in that if these charges were implemented under the guise of an environmental tax, the price increase is significantly higher for those using smaller, more fuel-efficient aircraft.”

Too many middlemen between the client and the operator, each applying their own markup, is also a factor for Aerowise. This lack of transparency between end client and operator, with any number of intermediaries each adding their own fee, further drives up costs. And the company mentions that new taxes in the US will affect aviation, particularly as many spare parts and services are sourced from abroad. A key example is engine programmes, where cost increases from taxes and tariffs can significantly affect pricing.

Pricing trends, now and to come

Doug Gollan, president and editor-in-chief at Private Jet Card Comparisons points out that the surge in charter demand during COVID that increased prices was led not only by first time customers, but also the big fractional operators who had to go off-fleet significantly more often than usual to fulfil contractual guarantees to share owners. “Big fractionals such as NetJets and Flexjet were buying up a much bigger percentage of the most premium charter aircraft capacity. That really gave operators across the board more pricing power than before,” he says. “Smaller operators benefited too. When brokers called for a quote, if they even got back to them, it was here is the price, take it or leave.” Gollan believes the industry is now back to being a more balanced market: “There is much more downward pressure on pricing again,” he notes.

However, Aviation Services Management believe fleets are not growing fast enough to meet demand, so unless more aircraft are produced or charter operators expand their fleets, prices will likely remain high. “As newer, more fuel-efficient models come to market, we could see a slight moderation in prices, but the demand for luxury services will still push prices higher,” says charter manager Taher Dholfar. He adds that geopolitical tensions can also impact pricing and routing: “When global operators avoided Israeli and Iranian airspace due to the conflict triggered by the Gaza bombings, flights from the UAE to the western parts of Asia had to reroute around Iran. This resulted in longer flight times and, for smaller aircraft like ours, the necessity of additional technical stops in nearby countries.” Such operational challenges lead to higher costs due to increased fuel consumption, landing fees and crew duty limitations.

In terms of what is to come on the pricing front, FlyAerotaxi president Simone Marsiglia says pricing will be influenced by the stability of fuel markets, advancements in fuel-efficient aircraft and potential regulatory changes that could impact operational overheads, while Javiation's Kearns thinks charter rates may stabilise as more aircraft return to the market and demand levels off. However regulatory pressures, particularly around sustainability, may introduce new costs that keep baseline pricing elevated.

Aerojet Me CEO Irina Duisimbekova notes that environmental regulations have forced prices up as the industry works toward greener practices. She expects pricing to remain elevated in the short to medium term as demand continues to outpace supply, but notes the wider adoption of SAF and hybrid-electric propulsion systems may actually help offset rising fuel costs. Electric propulsion, adds Dutta, should reduce fuel dependency and maintenance costs.