Show an ad over header. AMP

Private jets surge in popularity while commercial airlines struggle

Commercial airlines might be struggling, but small private jets are busier than ever, especially in Florida and other Sunbelt destinations.

The big picture: Untethered to their homes and offices during the pandemic, the wealthy are escaping to vacation homes and ski resorts — and paying handsomely to avoid commercial flights.

  • The private COVID getaways helped offset a collapse in corporate flights over the past year.
  • Now private jet companies are hoping those leisure travelers will be hooked on the convenience even after the pandemic subsides.

Why it matters: Layered on top of a resumption in corporate flights, the leisure boom could mean a big growth spurt ahead for the typically stable private aviation sector.

Driving the news: Investors see plenty of promise in private jet travel, otherwise known as business aviation, and experts predict more consolidation ahead for the fragmented industry. A few examples:

  • Wheels Up, an on-demand service that matches fliers with available aircraft, is going public in a SPAC deal that values the company at $2 billion — more than twice its 2019 value.
  • Vista Global, parent of subscription-based XO jet service, is acquiring Apollo Jets, a leading air charter provider.
  • Aero Technologies, a "semi-private" luxury jet startup from Uber co-founder Garrett Camp, raised $20 million in Series A funding earlier this month. It's offering $1,250 one-way flights from Los Angeles to Aspen and plans to add more routes soon.

Between the lines: Small planes — four to seven passengers — are the busiest, with fourth quarter departures down only about 10% from pre-pandemic levels, according to David Wireman, head of Alix Partners' aviation practice. "That's people flying their families around."

  • Flights on larger jets — the 10- or more seaters used by corporations — are down as much as 26%. Commercial airlines, by comparison, are still seeing passenger traffic 55% below pre-pandemic levels.
  • "We went from being a bit of luxury to now being a utility," Sentient Jet CEO Andrew Collins tells Axios. His company sold $450 million worth of its pre-paid Jet Cards in 2020, 50% more than usual.

The intrigue: It hasn't yet translated into increased deliveries for plane manufacturers, but sales of preowned business jets soared 13% in 2020, notes independent aviation consultant Brian Foley.

What to watch: Innovations like the on-demand apps that have made booking a private flight almost as easy as hailing an Uber will continue, predicts Wireman.

Yes, but: The popularity could be short-lived for those whose wallets stretched in order to book private planes in 2020, counters Foley.

  • "I feel that as soon as the airlines are perceived as safe again, a lot of those people will run back and look for their Economy Plus upgrade."

Corporate America begins to see fallout after wading into politics

Corporate America is finding it can get messy when it steps into politics.

Why it matters: Urged on by shareholders, employees and its own company creeds, Big Business is taking increasing stands on controversial political issues during recent months — and now it's beginning to see the fallout.

Keep reading... Show less

Church shelters call out U.S. for expelling migrants when they have capacity

Despite the separation between church and state, the federal government depends upon religious shelters to help it cope with migration at the U.S.-Mexico border.

Why it matters: The network supports the U.S. in times of crisis, but now some shelter leaders are complaining about expelling families to Mexico when they have capacity — and feel a higher calling — to accommodate them.

Keep reading... Show less

Derek Chauvin's guilty verdict in the murder of George Floyd is the rare officer conviction

Derek Chauvin, the former Minneapolis police officer who was shown kneeling on George Floyd's neck last year in a video that shook the nation, was found guilty of murder and manslaughter on Tuesday.

Yes, but: Eight years after the launch of the Black Lives Matter movement, it's still rare for police officersto face legal consequences or jail time over the deaths of Black people.

Keep reading... Show less

Senate confirms Lisa Monaco as Justice Department's deputy attorney general

The Senate voted 98-2 on Tuesday to confirm Lisa Monaco as deputy attorney general for the Justice Department, making her the agency's second highest-ranking official.

Why it matters: Monaco is expected to play a key role in Attorney General Merrick Garland's pledge to crack down on violence from domestic extremist groups, including the department's sweeping investigation of the deadly Jan. 6 Capitol riot.

Keep reading... Show less

Minneapolis reflects on Chauvin verdict as a step toward healing and calm

A growing crowd outside the Hennepin County Government Center broke out into cheers, hugs and tears of relief as word of the Derek Chauvin verdict spread just after 4pm CST.

Catch up quick: Eleven months after George Floyd died under the former Minneapolis police officer's knee, a jury of 12 neighbors returned a guilty verdict on all three counts.

Keep reading... Show less

"Painfully earned justice has finally arrived for George Floyd’s family": Nation reacts to Chauvin verdict

America is speaking out after the jury in Derek Chauvin's trial announced its guiltyverdict after about 10 hours of deliberation.

What they're saying...

Ben Crump, Floyd family lawyer: "GUILTY! Painfully earned justice has finally arrived for George Floyd’s family ... Justice for Black America is justice for all of America!"

Keep reading... Show less

Derek Chauvin found guilty of all 3 charges in George Floyd's death

A jury on Tuesday found former Minneapolis police officer Derek Chauvin guilty of second-degree murder, third-degree murder and second-degree manslaughter in George Floyd's death.

Why it matters: This rare conviction of a police officer may come to be seen as a defining moment in America's collective reckoning with issues of race and justice.

Keep reading... Show less

Super League in super trouble

The European Super League is on the brink before it even manages to launch.

The state of play: Two key English teams — Chelsea and Manchester City — are reportedly preparing to exit just two days after the league announced its formation, ESPN notes.

Keep reading... Show less



Get Goodhumans in your inbox

Most Read

More Stories