The COVID-19 pandemic saw a dramatic rise in demand for private jets due to the restrictions on commercial air travel. The general consensus in the industry was that the spike would fade once air service returned to normal, but events have unfolded differently. The business jet market is still going strong, with major players like Honeywell and Embraer projecting steady growth over the coming years.
As the global fleet of executive jets expands, it begs the question: What is the price tag on flying private? The cost of flying as a passenger varies widely depending on the method by which the plane is operated. Charter, jet card, fractional ownership, and other cost-sharing models reduce the total financial burden for flyers who only require a jet occasionally.
Full ownership is most cost-effective for flyers that cross the 200-hour-per-year benchmark. Then comes the cost difference between classes of aircraft. Some private jet operators need to make frequent but short-range hops, while others circle the globe in the upper atmosphere.
Biz Jets At A Glance
A very light jet can be as cheap as $2,000 per flight hour, while an ultra-long-range flagship model can cost upwards of $15,000. There is a significant difference in cost based on many factors, so we will try to break it down using the most general baseline possible to give a clear picture of what it looks like to own and operate your very own jet plane.
The cost of owning a business jet is divided between purchase costs, fixed costs, and variable costs. These vary significantly based on the size, age, type of aircraft, and how often it flies. Purchase costs include financing and interest rates, maintenance and upgrades, as well as taxes and fees. Fixed annual costs include crew salaries, hangar and storage fees, insurance, depreciation, management fees, training, and subscription services.
Variable operating costs are the expenses tied to the hours the jet is flown. Fuel expenses directly relate to the jet’s size, efficiency, and oil prices. Naturally, heavier jets burn more fuel per hour. Maintenance and repairs also depend on flight hours. Unexpected repairs are more frequent with older jets, which generally require more maintenance than newer ones.
Landing, parking, and handling fees can range from several hundred to thousands of dollars per mission, depending on the airport and jet size. Other itinerary-related expenses include catering, in-flight Wi-Fi, de-icing, or international permits. At the end of the day, every sortie is different, but the following sections will paint the broad strokes of how the different classes of biz jets stack up.
Overhead Costs
Crew salaries for pilots and flight attendants are major fixed expenses, with salaries typically ranging from $150,000 to over $400,000 annually per pilot. Hangar and storage fees vary by location and jet size, with fees potentially exceeding $100,000 per year at major airports. These costs are variable but unavoidable.
Aviation insurance for biz jets is a highly specialized and comprehensive form of coverage designed for the significant financial risks associated with these expensive aircraft. The cost of insurance for a jet is determined by dozens of factors and can range from tens of thousands to hundreds of thousands of dollars annually.
Depreciation is another significant factor, with new jets losing 10% to 15% of their value in the first year alone. Management fees can range from $100,000 to more than $250,000 per year. Training and related services are required for safety and regulatory compliance, which also factor into total costs.
Very Light Jets
Planes that fall under this category are exemplified by the likes of the HondaJet or Cessna Citation M2. These aircraft can accommodate four to five passengers, and the price per flight hour generally falls in the range of $2,000 to $5,000 per hour. The purchase price of a very light jet can be under $1 million, but also as high as a few million, depending on condition and model.
VLJs have small cabins, so they aren’t popular with larger organizations that need to transport teams, but the small biz jets have a specific niche appeal. The planes are the solution for a couple of key members from a corporate leadership team, or similar group, that may need to go where commercial aircraft can’t.
That puts annual operating costs at $400,000 on the low-end, assuming 200 hours, to $1,500,000 on the high-end based on the steeper hourly price and 300 flying hours. The jets in this class offer access to small fields with reduced upkeep and recurring expenses. The primary advantage over turboprops in the price range is performance in terms of speed and altitude.
Light Jets
Examples of aircraft in this class are the Embraer Phenom 300, Pilatus PC-24, and Cessna Citation CJ3+, according to Monarch Air Group. Seating an average of five to eight passengers, these planes can cost anywhere from $2,500 to $7,000 per hour to operate. The aircraft start in the low millions, but fetch over $10 million for higher-spec models.
These planes still have relatively small cabins, but fuel efficiency and access to small, minimally equipped airfields make them highly capable for businesses with interests outside the commercial aviation network.
An operator would expect $500,000 on the low end of the hourly spectrum if the log hits 200 hours. If the jet clocks 300 hours, the bill would be around $2,100,000 on the high end of the hourly price range. These planes are popular with corporate aviation thanks to a happy medium of healthy seating capacity and cost efficiency.
Mid-size Jets
Some mid-size biz jets are the Cessna Citation Latitude and the Hawker 850XP, according to Jet Stream. Meanwhile, the super mid-size are models like the Bombardier Challenger 350 or the Gulfstream G200. The price to fly one of these planes is $4,000 to $7,500 per hour on average. The entry-level to this class is at least a couple of million, but state-of-the-art variants range well into the tens of millions.
Mid-size jets are a popular class for charter operators, private owners, and corporate air fleets alike. The larger models balance the scales of cost and capability just before the edge that falls off into a much deeper price range of aircraft.
That puts annual operating costs at $800,000, assuming 200 hours in a plane on the lower end of the price range. That number goes up to $2,250,000 for 300 flying hours in a more expensive model in this class. Charter companies, corporate fleets that require higher capacity, and high-net-worth individuals are typical clientele for these kinds of aircraft.
Heavy Jets
The heavy class includes jets like the Bombardier Global 6000 and Gulfstream G550. Entering the realm of elite air travel comes with a price hike of commensurate proportions. These planes cost $10,000 to $22,000 per hour to fly for their operators. The barrier to entry is higher than mid-size, with the lowest sticker prices of at least a few million dollars, but newer planes easily go over $30 million.
This tier of executive aircraft requires deep pockets, very deep. The US Air Force operates a number of aircraft in this class as a part of its VIP transportation wing, as well as some intelligence, surveillance, reconnaissance (ISR), and electronic warfare (EW) missions. Aside from governments, the other typical owners are corporate and charter fleets.
A year’s worth of operating costs comes in at $2,000,000 at the bottom end of the range, with 200 flying hours. The high-end can fetch $6,600,000 with 300 hours of flight time. The stand-up height cabins and transcontinental range of these planes make them prime choices for mega-corporations and government agencies.
Ultra-Long-Range Jets
At the top of the food chain is the ULR class, which features the best private planes money can buy, like the Bombardier Global 8000 and Gulfstream G650. As the absolute pinnacle of private air travel, the planes in this market segment are likely not going to be below $15,000 per hour to fly and can easily exceed $25,000 per hour depending on a wide range of conditions. An aircraft of this grade starts in the tens of millions, with the latest and greatest easily priced over $60 million.
These planes afford unparalleled luxury and performance. The ULR class of biz jets can cross oceans in comfort and style. Large and spacious cabins provide plenty of room to conduct business in flight or simply enjoy the ride. The security and privacy of these elite planes make them a popular choice for industry leaders and heads of state.
Annual operating costs come in at $3,000,000 on the low-end, with 200 hours, and ranging up to $7,500,000 or more on the high-end, assuming 300 flying hours. These planes are typically out of the price range of even government entities, with the target customers being Ultra-high-net-worth individuals (UHNWIs).
