Honeywell forecast shows strong growth in business aviation as purchase plans surge

• The 31st Annual Global Business Aviation Outlook forecasts delivery of 8,500 new business jets. $274 billion for the next ten years.
• Projected business jet deliveries and spending over the next decade jump 15% from last year’s survey.
• Business jet use in 2022 is expected to increase by 9% over the previous year.
• Operators report a much greater interest in reducing their carbon footprint.

orlando, florida, October 16, 2022 /PRNewswire/ — Honeywell’s (NASDAQ: HON) 31st Annual Global Business Aviation Outlook forecasts deliveries of up to 8,500 new business jets. $274 billion From 2023 to 2032, there is a 15% increase in both deliveries and spending from the same 10-year forecast of a year ago. This year, surveyed operators reported new jet purchase plans on par with 2019 levels, doubling the rate of fleet additions from last year’s reported intentions. Respondent feedback in this year’s survey is consistent with industry reports that business jet production lines will sell out in the next few years.

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Business aviation forecast infographic

“The business aviation industry has benefited greatly from the wave of first-time users and buyers, partly due to the changing habits brought about by the COVID-19 pandemic,” said Honeywell Aerospace President, America Aftermarket. Market said. heath patrick“The business aviation sector is expected to recover to 2019 delivery and spending levels by 2023, much earlier than previously expected. We anticipate a high level of demand, as high as we have seen since 2016. We will continue to spend on new aircraft for several more years.”

Key findings from the Honeywell Global Business Aviation Outlook for 2022 include:

• New business jet deliveries in 2023 are expected to be 17% higher than in 2022. Spending is expected to increase by 20%.
• Five-year purchase plans for new business jets have increased by three percentage points compared to last year’s survey. This brings him to his 2019 level and equates to his 17% of the current fleet.
• Fleet additions are up for the second year in a row, doubling the rate in 2021 and exceeding 2% of the fleet.
• New jet aircraft deliveries and spending over the next decade are projected to grow at an average annual rate of 2%, in line with expected long-term global economic growth.
• A third of those surveyed expect to take more flights in 2023 compared to 2022. 64% expect to fly at least the same amount, and only 4% expect less.
• The large long-haul aircraft class is expected to account for over 70% of all new business jet spending over the next five years.
• Only 2% of surveyed operators plan to dispose of the aircraft rather than replace it, half the percentage collected in 2021.
• Five-year buying plans for used jets remain high, with current fleet totals at 28%, in line with last year’s results. High demand for used jets continues to put pressure on an already low inventory of jets available for sale.

New users in business and private aviation

The business aviation industry is benefiting from a wave of first-time private aviation users and buyers, likely due to COVID-19. 2022 could see flight activity reach levels not seen since 2007, his busiest year yet for business aviation. Concerns about pathogen exposure and shrinking premium-class air service have helped fuel recent growth in business and private aviation. owners and operators gaining their first private aviation users.

• About 74% of new civil aviation users surveyed expect to maintain the same level of flying in 2023 as they did in 2022, which is 10% higher than the overall aircraft average. Only 4% expect fewer flights in 2023.
• Nearly 85% of first-time users are active in the Americas.
• In the Americas, 80% of first-time buyers usa; the rest is mainly Brazil.
• Business turboprops and light jets each account for 35% of the fleet carrying these new users, followed by medium jets (18%) and large long-range jets.

Sustainability in business aviation

Honeywell is committed to achieving carbon neutrality in our operations and facilities by 2035 and advancing aviation sustainability with a wide range of off-the-shelf solutions that support a more sustainable future for the aviation sector. This year’s study features a dedicated section on operators’ current and future plans to reduce their operational carbon footprint.

• Half of the businesses surveyed this year report that they are currently implementing at least one method to reduce their carbon footprint, up 30 percent from last year’s survey.
• The most frequently cited current ways to reduce our carbon footprint are ‘Reducing or slowing down private jet travel’ (20%) and ‘Increasing passenger capacity That’s followed by 17%.
• Sustainable aviation fuels (SAF) are the third most cited current method of reducing carbon emissions (14%). However, the operator cites challenges with his SAF availability.
• More than 60% of operators plan to adopt or increase greener operating methods in the future, with 37% citing SAF as the most common way to achieve this goal.
• When the survey asked the remaining 40% what would compel them to adopt measures to address sustainability in the future, 57% of these businesses said tax incentives or lower operating costs would force them to do so. You mentioned economic incentives such as savings.

influence business decisions

The Global Business Aviation Outlook reflects current operator concerns and identifies longer cycle trends that Honeywell uses in its own product decision process. The research has helped identify opportunities for investment in sustainability solutions, expanding propulsion offerings, innovative safety products, services and upgrades, and enhancing aircraft connectivity offerings. The research informs Honeywell’s business pursuit strategy and helps consistently position the company among high-value platforms in growth sectors.

methodology

Honeywell’s forecasting methodology is based on multiple sources, including macroeconomic analysis, OEM production and development plans shared with the company, and expert deliberations by aerospace industry leaders. Honeywell also uses information gleaned from interviews conducted with 152 non-fractional business jet operators worldwide during the forecast cycle. The survey sample is representative of the industry as a whole in terms of geography, operations and fleet configuration. This holistic approach gives Honeywell unique insight into operators’ emotions, preferences and concerns, giving them considerable insight into their product development needs and opportunities.

About Honeywell

Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft. The Aerospace business unit manufactures aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components, and more. The company’s hardware and software solutions enable more fuel-efficient aircraft, more direct and on-time flights, and safer skies and airports. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero.

Honeywell (www.honeywell.com) is a Fortune 100 technology company providing industry-specific solutions including aerospace products and services. Building and industrial control technology. and performance materials globally. Our technology strengthens the connections between aircraft, buildings, manufacturing plants, supply chains and workers, helping to make our world smarter, safer and more sustainable. For Honeywell news and information, visit www.honeywell.com/newsroom.

This release contains certain statements that may be deemed “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that the Company or its management intends, expects, plans, believes or anticipates are forward-looking statements. Such statements have been made in light of our management’s experience and perception of historical trends, current economic and industry conditions, anticipated future developments and such other factors as it deems appropriate. Based on assumptions and evaluations. Many forward-looking statements in this release include, but are not limited to, economic, competitive, governmental and technological factors that may affect our business, markets, products, services and prices. are subject to significant risks and uncertainties of Such forward-looking statements are not guarantees of future performance and actual results, developments and business decisions may differ from those envisioned by such forward-looking statements. there is. In our Form 10-K and other filings with the Securities and Exchange Commission, we identify key risks and uncertainties affecting our results of operations.

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