Charter Demand Still Climbing, but Prices Remain Flat
Demand for charter flights appears to be climbing again, though charter hourly rates continue to be flat. Online charter portal Avinode says its April 1 demand index was 126.14–some 22 points higher than a year ago and about three points higher than last month.
At 98.1, though, the forward-looking price index for April was little changed from both last year and March 1. Charter pricing in the North American market dropped by two points from a year ago, while in Europe pricing solidified, rising about five points since April 2011.
Avinode’s snapshot of actual flight hour rates paid in recent months for its example large-cabin business jet shows a much different picture. In North America, the average rate on April 1 for a Bombardier Challenger 604 stood at $5,256 an hour, up 8 percent from a month ago and up about 3 percent from last year. In international markets, charter pricing for the same aircraft also increased by the same month-over-month and year-over-year percentages, to €4,912 ($6,753) per hour.