By Shivansh Tiwary
(Reuters) - Global demand for new business jets is expected to stay strong over the next decade, Honeywell (NASDAQ:HON) said on Sunday, as the engine maker projected deliveries of about 8,500 new planes through 2033.
The forecast is consistent with Honeywell's rolling 10-year projection provided last year, but the value of jets expected to be delivered has increased by $4 billion to $278 billion, the company said in its annual Global Business Aviation Outlook.
Private aviation witnessed a surge in newcomers, both in users and buyers, after the COVID-19 pandemic lifted demand for private flying as the wealthy took control of their travel.
Global flight activity, however, is expected to decrease by 4% this year compared with 2022 on factors such as inflation and the resumption of commercial air service on key routes.
Still, 2023 flight activity is expected to finish at least 10% above the 2019 levels, said Honeywell, which provides engines to private jet makers such as Bombardier (OTC:BDRBF) and General Dynamics-owned Gulfstream.
The flight activity is anticipated to stabilize in 2024 and grow in 2025, according to Honeywell. The revival is set in motion by an accelerated surge in initial public offerings, rising corporate profits and easing inflation rates, its forecast showed.
The company also said it expects new private jet deliveries in 2024 to be 10% higher than this year, while expenditure on private flying is expected to rise by about 13%.
"Our industry is on the upswing. Operators are showing confidence with plans to expand their fleets at a faster rate than any time in the previous decade," said Heath Patrick, president, Americas aftermarket, Honeywell Aerospace.
New users in business aviation have also increased demand by 500 aircraft and 6% more flights over the next 10 years.