UBS Global Research’s latest Business Jet Market Index report shows a decidedly more optimistic outlook for the industry following the U.S. election. According to the report, released on December 9, the index came in at 45, a 32-percent jump from UBS’s prior survey, “representing one of the largest sequential increases in its 13-year history.” However, the index has yet to reach or surpass 50, which would denote improving market conditions.
By cabin size, the light jet index is the healthiest at 49, a 14-percent rise sequentially, followed by midsize jets at 45 (up 44 percent) and large-cabin jets at 42 (up 49 percent). In addition, UBS said that the straight-up measure of absolute business conditions came in at 4.8, 12 percent higher than in September.
Of the market professionals who provided data for the UBS report, 47 percent indicated that customer interest had improved after the election versus 5 percent that indicated it had deteriorated. The remaining 48 percent indicated no change in interest. Customer interest scores increased in all regions: North America, which surged 32 percent; Latin America, up 24 percent; Europe, up 20 percent; Middle East, up 18 percent; and Asia, up 12 percent.
The new Trump Administration in the U.S. is widely seen as a positive, with 61 percent of those surveyed expecting the outcome of the U.S. presidential election to ultimately be positive for the business jet market, while 11 percent don't see a positive impact and 28 percent are uncertain.