Honeywell raises outlook for business jet deliveries as demand rebounds

Reuters2021-10-11

Oct 10 (Reuters) - Honeywell International Inc on Sunday raised its outlook for business jet deliveries, as the aviation sector shakes off the effects of the COVID-19 pandemic and travel picks up with easing restrictions.

The U.S. industrial conglomerate forecast up to 7,400 new business jet deliveries worth $238 billion from 2022 to 2031, up 1% from the same 10-year forecast a year ago.

Wealthy travelers wanting to fly with fewer people during the pandemic has put pressure on the availability of new corporate aircraft and led to a shortage of pre-owned business jets.

"The increased demand for used jets is estimated at more than 6,500 units over the next five years, putting pressure on an already record low inventory and driving additional demand for new jets," said Heath Patrick, president of Americas aftermarket for Honeywell Aerospace.

Business jet operators surveyed by Honeywell reported a sharp increase in their used jet purchase plans, 12% above last year's report, the North Carolina-based company said.

Last month, planemaker Boeing Co also revised up its long-term demand forecasts with a rebound in commercial air travel in markets like the United States.

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