Honeywell anticipates a 10-year rise in the number of private jet deliveries

Honeywell International Inc (NASDAQ:HON) upped its delivery forecast for business jets on Sunday, as the COVID-19 pandemic increased the number of first-time buyers and users in the private aviation industry.

Honeywell forecasts up to 8,500 new business jet deliveries valued at $274 billion between 2023 and 2032, an increase of 15% compared to last year's forecast, while consumption in 2022 is expected to rise by 9%.

Fearing exposure to the virus, wealthy passengers opted for charter flights during the pandemic, resulting in an increase in demand for private aviation travel.

Former first-class commercial airline passengers have increasingly migrated to private flights. Nearly 74% of new Honeywell customers questioned anticipate continuing the same level of flying in 2023 as in 2022.

According to the company's survey, 35% of the fleet carrying these new users consists of business turboprops and small cabin jets, followed by medium jets and large long-range aircraft.

Since 2015, demand for new business aircraft has increased, according to Heath Patrick, head of Honeywell Aerospace's Americas aftermarket. We foresee continued high demand and spending for new aircraft over the next several years.

Business aviation industry giants such as Airbus SE (OTC:EADSY), Boeing (NYSE:BA), Bombardier (OTC:BDRBF), and General Dynamics Corp will benefit from operators' plans to purchase the same number of new jets in 2020 as they did in 2019. (NYSE:GD).

Eric Matel, the CEO of Bombardier, saw an important development in the fleet running business in August, namely that not all clients own a jet.