Honeywell Forecast Reveals Fast Rebound For Enterprise Aviation As Flight Hours, Buy Plans Develop

– Enterprise jet flight hours in 2021 are anticipated to be nearly 50% larger than a 12 months in the past, and above pre-pandemic ranges

– thirtieth annual World Enterprise Aviation Outlook initiatives 7,400 new enterprise jet deliveries over the subsequent decade valued at $238 billion

– 90% of operators say that buy plans of recent or used jets haven’t been postponed by COVID-19

– Enterprise jet operators report a pointy enhance in used plane buy plans

LAS VEGAS, Oct. 10, 2021 /PRNewswire/ — Honeywell’s (NASDAQ: HON) thirtieth annual World Enterprise Aviation Outlook forecasts as much as 7,400 new enterprise jet deliveries value $238 billion from 2022 to 2031, up 1% in deliveries from the identical 10-year forecast a 12 months in the past. In 2021, surveyed enterprise jet operators reported a pointy enhance in used jet buy plans, 12% above final 12 months’s report, equal to 800 extra used enterprise plane. Enterprise plane producers additionally introduced a robust enhance in jet orders, indicating that the business has nearly fully shaken off the consequences of the COVID-19 pandemic.

2021 Enterprise Aviation Forecast Infographic – Honeywell Aerospace

“The elevated demand for used jets is estimated at greater than 6,500 models over the subsequent 5 years, placing strain on an already report low stock and driving extra demand for brand spanking new jets,” stated Heath Patrick, president, Americas Aftermarket, Honeywell Aerospace. “Our newest operator survey outcomes assist continued non-public jet utilization development, as greater than 65% of respondents anticipate elevated enterprise jet utilization in 2022. Regardless of the continued challenges introduced by the pandemic, flight hours have recovered and grown past pre-pandemic ranges. The general well being of the enterprise jet market is robust, and development is predicted to proceed.”

Key findings within the 2021 Honeywell World Enterprise Aviation Outlook embrace:

  • Buy plans for used jets present a rise on this 12 months’s survey. Operators worldwide indicated that 28% of their fleet is predicted to get replaced or expanded by used jets over the subsequent 5 years, up 3 share factors in contrast with survey outcomes from 2020. Enterprise jet deliveries in 2022 are anticipated to be up 10% from 2021 when it comes to models billed.

  • The longer-range forecast via 2031 initiatives a 3% common annual development charge of deliveries in keeping with anticipated worldwide long-term financial development.

  • 5-year buy plans for brand spanking new enterprise jets are down 2 share factors in contrast with final 12 months’s survey. This may be attributed to uncertainty across the COVID-19 Delta variant on the time of the survey. The lower is pushed by fewer replacements within the fifth 12 months; nonetheless, fleet additions grew by 1 share level.

  • The sharp enhance in demand for used jets, coupled with a lower-than-ever stock of used plane accessible on the market, will inevitably drive extra demand for new-build enterprise jets. Amongst these with buy plans of recent enterprise jets over the subsequent 5 years, 29% of purchases are anticipated to happen within the subsequent two years. That is simply 1 share level decrease than final 12 months’s survey.

  • Operators plan to make new jet purchases equal to about 14% of their fleets over the subsequent 5 years as replacements or additions to their present fleet.

  • Bigger-cabin, heavy plane lessons are anticipated to account for greater than 72% of all expenditures of recent enterprise jets within the subsequent 5 years.

Minimal ongoing COVID-19 impression in 2021:

  • 9 of 10 operators within the survey stated their new or used jet shopping for plans haven’t been postponed by the continued COVID-19 pandemic. Practically 100% of 2021 respondents stated that they’d not cancelled and don’t plan to cancel a supply on a brand new plane.

  • Yr so far, enterprise aviation utilization traits level to a virtually 50% enhance in flight hours in 2021 versus 2020, roughly 5% above 2019 (pre-COVID).

  • 65% of respondents globally anticipate to function their enterprise jets extra often in 2022 versus 2021.

  • 2021 survey respondents are usually not signaling gross sales of late-model plane because of COVID-19. Particularly, solely 4% of all respondents within the survey are planning to promote a number of plane with out substitute within the subsequent 5 years in contrast with 10% in final 12 months’s survey.

  • Only a few respondents (6%) reported that circumstances for his or her flight departments had worsened in 2021.

Breakdown by Area

North AmericaIn contrast with final 12 months, five-year new plane acquisition plans in North America are down 3 share factors as operators’ cool expectations for the fifth 12 months within the survey interval. That is doubtless pushed by the uncertainty brought on by the Delta variant amongst smaller jet operators. Used plane buy plans are up 3 share factors.

  • New jet buy plans in North America are down 3% on this 12 months’s survey in contrast with final 12 months. Over the subsequent 5 years, at the very least 13% of the fleet is predicted to get replaced or supplemented with a brand new jet buy.

  • About 35% of operators responding to the survey plan to schedule their new purchases inside the first two years of the five-year horizon. That is 3 share factors larger than in final 12 months’s survey, and above the worldwide common of 29%.

  • Buy plans for used jets are up 4 share factors compared with final 12 months’s survey and above historic averages.

  • An estimated 63% of worldwide demand for brand spanking new jets will come from North American operators over the subsequent 5 years, down simply 1 share level in contrast with final 12 months’s survey.

Europe European operators’ new plane buy plans are down 5 share factors 12 months over 12 months because the Delta variant pressured governments to limit journey throughout borders, creating uncertainty.

  • Europe’s buy expectations decreased this 12 months to roughly 19% of the worldwide fleet, down 5 share factors in contrast with final 12 months’s outcomes. Europe’s buy expectations had been excessive previously few years as operators refreshed an getting old fleet.

  • About 23% of operators plan to schedule their new purchases inside the subsequent two years, in keeping with earlier 12 months’s outcomes and under the worldwide common of 29%.

  • Plane substitute and enlargement plans for used plane in Europe are the very best globally and in current historical past, equal to 34% of their fleet, up 6 share factors versus 2020.

  • Europe’s share of world demand over the subsequent 5 years is estimated to be 16%, 2 share factors decrease than final 12 months.

Latin AmericaBuy plans recovered to 2019 ranges, up 6 share factors versus final 12 months.

  • In Latin America, 21% of the fleet is predicted to get replaced or supplemented with new jet purchases over the subsequent 5 years, up from 15% in final 12 months’s survey.

  • About 29% of this area’s projected purchases are deliberate between 2021 and 2023, on par with the worldwide common.

  • Latin America will characterize 5% of the whole projected enterprise jet demand over the subsequent 5 years versus 3% in final 12 months’s survey. The rise is probably going because of a extra optimistic financial outlook following final 12 months’s deep pessimism within the area.

Asia Pacific Regardless of ongoing geopolitical and industrial tensions, buy plans are up.

  • Asia Pacific operators report plans to switch at the very least 15% of their jet fleets over the subsequent 5 years with new jet purchases, up from 14% in 2020’s survey. APAC operators additionally report fleet enlargement intentions for the primary time in three years, equating to 0.3% of the present fleet.

  • Based mostly on the expressed stage of buy plans, Asia Pacific will characterize a 12% share of world new jet demand over the subsequent 5 years.

  • About 20% of respondents in Asia Pacific plan to schedule their new purchases inside the first two years of the five-year horizon, in contrast with 30% a 12 months in the past.

Center East and Africa (MEA) – The survey marked a five-12 months low in the case of buy plans in 2021.

  • 9% of respondents stated they’ll exchange or add to their fleet with a brand new jet buy, down from 16% final 12 months.

  • About 13% of operators responding to the survey plan to schedule their new buy inside the first two years of the five-year horizon, down from 46% a 12 months in the past.

  • The share of projected five-year world demand attributed to MEA stays at 4%, in keeping with the historic vary of 4% to six%.

Used Jets

  • Plans to amass used jets within the subsequent 5 years elevated by about 4 share factors from final 12 months’s survey. 29% of used enterprise jets will commerce arms over the subsequent 5 years, in contrast with a five-year projection of 25% in 2020.

Making an Impression on Enterprise Selections

The World Enterprise Aviation Outlook displays present operator issues and in addition identifies longer-cycle traits that Honeywell makes use of in its personal product choice course of. The survey has helped determine alternatives for investments in flight-efficiency upgrades, expanded propulsion choices, modern security merchandise, companies, upgrades, and enhanced plane connectivity choices. The survey additionally informs Honeywell’s enterprise pursuit technique and helps place the corporate constantly on high-value platforms in development sectors.

Methodology

Honeywell’s forecast methodology relies on a number of sources, together with, however not restricted to, macroeconomic analyses, authentic gear producers’ manufacturing and improvement plans shared with the corporate, and professional deliberations from aerospace business leaders. Honeywell additionally makes use of data gathered from interviews carried out through the forecasting cycle with over 1,522 nonfractional enterprise jet operators worldwide. The survey pattern is consultant of your complete business when it comes to geography, operation and fleet composition. This complete method supplies Honeywell with distinctive insights into operator sentiments, preferences and issues, and supplies appreciable perception into product improvement wants and alternatives

About Honeywell

Honeywell Aerospace services and products are discovered on nearly each industrial, protection and area plane. The Aerospace enterprise unit builds plane engines, cockpit and cabin electronics, wi-fi connectivity methods, mechanical parts and extra. Its {hardware} and software program options create extra fuel-efficient plane, extra direct and on-time flights and safer skies and airports. For extra data, go to www.honeywell.com or comply with us at @Honeywell_Aero.

Honeywell (www.honeywell.com) is a Fortune 100 expertise firm that delivers business particular options that embrace aerospace services and products; management applied sciences for buildings and business; and efficiency supplies globally. Our applied sciences assist all the pieces from plane, buildings, manufacturing vegetation, provide chains, and employees turn out to be extra linked to make our world smarter, safer, and extra sustainable. For extra information and knowledge on Honeywell, please go to www.honeywell.com/newsroom.

This launch accommodates sure statements that could be deemed “forward-looking statements” inside the which means of Part 21E of the Securities Trade Act of 1934. All statements, apart from statements of historic truth, that deal with actions, occasions or developments that we or our administration intends, expects, initiatives, believes or anticipates will or might happen sooner or later are forward-looking statements. Such statements are primarily based upon sure assumptions and assessments made by our administration in gentle of their expertise and their notion of historic traits, present financial and business circumstances, anticipated future developments and different elements they consider to be applicable. The forward-looking statements included on this launch are additionally topic to quite a few materials dangers and uncertainties, together with however not restricted to financial, aggressive, governmental, and technological elements affecting our operations, markets, merchandise, companies and costs. Such forward-looking statements are usually not ensures of future efficiency, and precise outcomes, developments and enterprise choices might differ from these envisaged by such forward-looking statements. We determine the principal dangers and uncertainties that have an effect on our efficiency in our Type 10-Ok and different filings with the Securities and Trade Fee.

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