Flying Forward

Buoyed by a post-pandemic surge in demand and fuelled by the increasing ranks of global affluence, the general aviation market witnessed a remarkable year in 2023. This growth was propelled by two key factors: pent-up demand from individuals eager to travel freely after pandemic restrictions and the rise of high-networth individuals (HNWIs) and ultra-high-net-worth individuals (UHNWIs) seeking private aviation solutions. As a consequence, the acquisition of helicopters and business jets saw a significant uptick, painting a positive outlook for the future of the industry.

“For the first time in more than a decade, the general aviation manufacturing industry has eclipsed 4,000 aircraft delivered. In addition to this strong showing, there are robust and growing order backlogs for all segments of aircraft. This is a testament to the resilience of our industry and the integral role that general and business aviation plays in our communities,” said Pete Bunce, GAMA President and CEO.

2023 – CONFIRMATION OF GROWTH

According to GAMA report, airplane shipments in 2023, when compared to 2022, saw piston airplane deliveries increase 11.8 per cent from the same reporting companies, with 1,682 units; turboprop airplane deliveries increase 9.6 per cent, with 638 units; and business jet deliveries increase 2.5 per cent, with 730 units. The value of airplane deliveries for 2023 was $23.4 billion, an increase of approximately 2.2 per cent. Throughout the fiscal year, the aviation industry witnessed a notable trajectory in aircraft shipments, underscored by a consistent upward trend, with the fourth quarter (QIV) emerging as the zenith in terms of shipment volume. Noteworthy is the resilient growth in single-engine piston and electric aircraft shipments, which displayed a steady incline across all quarters, signifying a persistent demand for these aircraft types. Business jets, a pivotal segment in the aviation market, experienced remarkable expansion, particularly in QIV, accentuating their pivotal role in shaping market dynamics. Turboprop airplanes, encompassing both single and multiengine variants, maintained a steady cadence of shipments, albeit amidst periodic fluctuations, showcasing a resilient market presence.

THE GENERAL AVIATION MANUFACTURING INDUSTRY DELIVERED OVER 4,000 AIRCRAFT IN 2023, MARKING A SIGNIFICANT MILESTONE AND REFLECTING THE INDUSTRY’S RESILIENCE

An intriguing facet of the analysis is the discernible surge in airplane billings as the fiscal year progressed, with QIV serving as the apex in terms of financial transactions. This surge in billings was largely propelled by the robust performance of business jets, characterised by their upscale price points and concomitant contribution to revenue generation. Furthermore, the substantial contribution of single-engine piston and electric airplanes to the overall billings underscored their economic significance within the aviation ecosystem, facilitated by their commendable shipment volumes.

Piston helicopter deliveries for 2023, when compared to 2022, saw an increase of 7.7 per cent, with 209 units; and preliminary civil-commercial turbine helicopter increase 10.4 per cent, with 753 units. The preliminary value of helicopter deliveries for 2023 was $4.4 billion, an increase of approximately 11.2 per cent. The analysis of helicopter shipments unveiled a landscape punctuated by fluctuations throughout the fiscal year, culminating in QIV emerging as the preeminent period in terms of shipment frequency. Notable is the consistent growth trajectory exhibited by turbine helicopters, outstripping their piston counterparts, thereby highlighting a discernible preference for high-performance aircraft within the market landscape.

Mirroring the trend observed in airplane billings, helicopter billings witnessed a commendable uptick over the fiscal year, with QIV marking the zenith in terms of financial transactions. Turbine helicopters, synonymous with elevated price points commensurate with their superior performance, emerged as a significant contributor to overall billings, underlining their pivotal role in shaping revenue dynamics within the helicopter segment.

TRENDS OVER PREVIOUS YEARS

The shipments of Piston Airplanes have shown a consistent upward trend from 2019 to 2023. In 2019, there were 1,324 units shipped, and this number steadily increased to 1,682 units by 2023, marking a cumulative increase of 358 units over the period. Notably, the growth rate was highest between 2022 and 2023, reaching 11.8 per cent. Although Turboprop Airplane shipments experienced fluctuations, the overall trend has been positive. From 2019 to 2023, the total number of shipments increased by 113 units. The highest growth rate of 9.6 per cent was observed between 2022 and 2023. Shipments of Business Jets have shown some variability over the years, yet there has been a slight overall increase. Between 2019 and 2023, the total number of shipments increased by 81 units. The highest growth rate of 2.5 per cent was observed between 2021 and 2022. The cumulative aircraft shipments increased steadily over the years, reaching 3,050 units in 2023. There was a notable increase of 351 units between 2022 and 2023, representing a growth rate of 9.0 per cent.

THERE IS A CLEAR TRAJECTORY OF POSITIVE GROWTH IN BOTH AIRPLANE AND HELICOPTER SHIPMENTS AND BILLINGS, WITH NORTH AMERICA AND EUROPE DEMONSTRATING STEADY GROWTH OR STABILITY, WHILE THE ASIA PACIFIC REGION PRESENTS SIGNIFICANT GROWTH POTENTIAL, PARTICULARLY IN TURBOPROPS

Billings for Piston Airplanes have demonstrated a consistent upward trajectory from 2019 to 2023. In 2023, the billings amounted to $23.4 billion, reflecting a slight increase of 2.2 per cent from the previous year. Billings for Turboprop Airplanes have followed a similar pattern to shipments, with a steady increase over the years. The highest growth rate of 6.6 per cent was observed between 2021 and 2022. While billings for Business Jets exhibited fluctuations, there was an overall positive trend. In 2023, the billings amounted to $22.9 billion, showing a modest increase of 2.5 per cent from the previous year. The total aircraft billings increased steadily over the years, reaching $23.4 billion in 2023. There was a notable increase of 2.2 per cent in billings from 2022 to 2023.

Shipments of Piston Helicopters have shown a steady increase over the years. The highest growth rate of 7.7 per cent was observed between 2022 and 2023. Turbine Helicopter shipments witnessed fluctuations, yet there is an overall increasing trend. The highest growth rate of 10.4 per cent was observed between 2021 and 2022. The total number of helicopter shipments increased steadily over the years, reaching 962 units in 2023. There was a notable increase of 86 units between 2022 and 2023, representing a growth rate of 9.8 per cent. Billings for Piston Helicopters have increased steadily over the years, reaching $4.4 billion in 2023. There was a notable increase of 11.2 per cent in billings from 2022 to 2023. Billings for Turbine Helicopters have followed a similar pattern to shipments, with a steady increase over the years. The highest growth rate of 10.4 per cent was observed between 2021 and 2022.

REGIONAL TRENDS BY AIRCRAFT TYPE

In North America, the market for general aviation aircraft shows steady growth across most aircraft types. For Piston Engine aircraft, there is a slight increase in shipments over the years, indicating a consistent demand. Turboprops exhibit some fluctuations but generally maintain a stable proportion of shipments. Business Jets consistently dominate the market, with high proportions of shipments each year, reflecting a strong demand for business aviation in the region.

Similar to North America, Europe also demonstrates stable growth in general aviation aircraft shipments. Piston Engine aircraft show a slight increase in shipments, suggesting sustained demand in this market. Turboprops exhibit fluctuations but overall maintain a stable proportion of shipments. Business Jets show a clear growth trend, with increasing proportions of shipments over the years, indicating a rising demand for business travel in Europe.

The Asia Pacific region shows significant growth potential in the market for general aviation aircraft. While Piston Engine aircraft shipments remain relatively stable, Turboprops experience notable growth, especially from 2019 to 2022, indicating increasing demand for this type of aircraft in the region. Business Jets also show variability but with an overall increasing trend, suggesting a growing market for business aviation in Asia Pacific.

Latin America’s market for general aviation aircraft presents mixed trends across different aircraft types. There is a decline in shipments for Piston Engine aircraft, indicating a diminishing demand. However, Turboprops show significant fluctuations but maintain a relatively high proportion of shipments, suggesting some growth potential in this segment. Business Jets exhibit variable trends but with a slight overall increase, indicating potential growth in the market for business aviation in Latin America.

The Middle East & Africa region shows a stable market for general aviation aircraft, with minimal fluctuations in shipments across aircraft types. Piston Engine aircraft shipments remain relatively stable, with a slight decline in recent years. Turboprops exhibit fluctuations but maintain overall stability. Business Jets show variability in shipments but without a clear trend, indicating a stable market without significant growth or decline in demand for business aviation in the region.

CONCLUSION

There is a clear trajectory of positive growth in both airplane and helicopter shipments and billings over the last year, underscored by the resilient performance of business jets and turbine helicopters. Overall, the trends in general aviation aircraft shipments reveal a dynamic and evolving market. While North America and Europe demonstrate steady growth or stability in shipments across all aircraft types, Asia Pacific presents significant growth potential, particularly in Turboprops. Latin America shows mixed trends, with declining shipments for Piston Engine aircraft but potential growth in Turboprops and Business Jets. The Middle East & Africa region appears to have a stable market without significant fluctuations in shipments across aircraft types.