Is The Bizjet Market Benefitting from 'Trump Bump'?

“Is the ‘Trump Bump’ translating to actual improvement in the business jet market?” UBS Global Research aerospace analysts David Strauss and Darryl Genovesi ponder in the firm’s latest Business Jet Market Survey. In terms of perception it is; the UBS Business Jet Market Index is now at 53, up 5 percent from last month—the fifth consecutive monthly increase. This overall index denotes an improving market, and 49 percent of survey respondents indicated that they have already seen higher preowned business jet transaction volumes post-election versus 5 percent that have seen lower volumes.

By cabin size, the UBS index for light jets is tops at 58, up 10 percent from last month, followed by midsize jets at 52, rising 1 percent, and large-cabin jets climbing 8 percent, to 50. Business jet customer interest remains strongest in North America at an index of 79, and it is now at or more than 50 in Europe, the Middle East, and Asia, with Latin America just slightly below at 48.

The higher index reflects greater willingness of dealers to increase preowned business jet inventory, lower inventory levels of pre-owned jets and improved customer interest, partially offset by lower scores for pricing and 12-month outlook. UBS’s customer interest and willingness scores—78 and 66, respectively—are now at new post-financial-crisis highs.

Of survey respondents, 65 percent expect the outcome of the U.S. Presidential election to ultimately be positive for the business jet market, down from 72 percent a month ago. Meanwhile, 12 percent believe Trump will have a negative impact on the market and 23 percent are now uncertain.