Air Charter Services Market Size to Grow by $8.8 Billion

The air charter services market is set to grow by USD 8,827.65 million from 2022 to 2027, progressing at a CAGR of 5.37% during the forecast period. The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment. 

The major factor driving the air charter services market growth is the increasing demand for cargo charter services. The increase in air cargo volumes has a favorable opportunity for air cargo providers and cargo charter operators. Also, this leads to the renewal of long-term charter contracts.

The significant reason for the growing demand for cargo charter operators is the shipment of oversized and difficult-to-fit products in comparison to the standard logistic containers and aircraft used by air cargo operators. Moreover, the major reasons behind the upsurge in volume are last-minute capacity, unforeseen complications, time constraints, and other urgent factors.

Further, the other factors that drive the decision to engage cargo charter operators are the nature of the freight, the use of remote or makeshift airstrips, and the use of airports that are not serviced by scheduled airlines. In terms of commercial cargo, the growing demand for e-commerce has influenced cargo charter services significantly, and it is anticipated to grow further during the forecast period. 

The report on the air charter services market provides a holistic update, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis. 

Air Charter Services Market 2023-2027 - Market Dynamics

Major Trends

The primary trend driving the air charter services market growth is the innovative additions to charter service portals.  Air charter booking websites like PrivateFly, JetSetGo, and BookMyCharters have changed the whole scenario of private jet booking, creating it as comfortable as booking a cab online. These online platforms enable customers to book a private jet fast and easily accessible by just selecting or entering a few mandated details about the journey, such as the departure and arrival location and time, the date of the journey, and the number of passengers. Also, in addition to instant bookings, such portals offer other information and tools to gain the knowledge required and make better decisions as per the customer requirements without involving any middleman. Therefore, such elimination of a middleman or agent also lowers the cost significantly, which will boost the market growth during forecast growth.

Significant Challenge

The major challenge hindering the air charter services market growth is the volatility in aviation fuel prices. The prevalence of charter service providers uses fuel-powered business jets. These business jets account for a major share of the global aviation market. Fuel cost is the major component of the overall charter price paid by the customer and accounts for approximately one-fourth of the total price. They offer customers the freedom of selecting from different service operators for each flight since air charter services are priced on a pay-as-you-go basis. In 2021, due to an increment of 6.5% in the prices of aviation fuel, the total sales of conventional fuel-powered light aircraft witnessed a considerable drop during the same period. International crises, such as wars, create a surge in fuel prices. Technavio expects fuel prices to surge by 40.65% due to global factors in play, such as the Organization of the Petroleum Exporting Countries (OPEC) limiting its output, the US pulling out of the nuclear agreement with Iran, and the decline in Venezuelan oil output. A surge in fuel prices may restrict the potential interest of buyers, as the same will expand the cost of travel associated with each trip, lowering the viability of this mode of transport.

What's New?

• Special coverage on the Russia-Ukraine war; global inflation; recovery analysis from COVID-19; supply chain disruptions, global trade tensions; and risk of recession
• Global competitiveness and key competitor positions
• Market presence across multiple geographical footprints 

Air Charter Services Market 2023-2027: Market Segmentation

The air charter services market is segmented by application (charter passenger, charter freight, and others), type (business charter services and private charter services), and geography (APAC, North America, Europe, Middle East and Africa, and South America). 

• The market share growth by the charter passenger segment will be significant during the forecast period. For the business aviation industry, the vendors are looking for an end-to-end payment platform that is specifically designed. It has brought a revolution in the business aviation payment industry, significantly contributing to the growth of the global air charter services market by easing out payment transactions. Developing economies like India are trying to achieve a higher market share in the global air charter services market by increasing their performance standards and enhancing infrastructure to promote growth and connectivity. Moreover, the vendors are looking for an end-to-end payment platform that is particularly developed for the business aviation industry. It has brought a revolution in the business aviation payment industry, greatly contributing to the growth of the global air charter services market by easing out payment transactions.