Market Trends of Latin America Business Jet Industry
The Light Jet Segment Will Showcase Remarkable Growth During the Forecast Period
A light jet is a small class of aircraft that generally carries between four and eight passengers. It is used for short-distance travel since it cannot hold more fuel. Such jets can also access small airports with short runways in remote or public areas, enabling them to land in smaller airports and making light jets ideal for business travel.
The recent surge in high-net-worth individuals (HNWIs) has also driven the demand for such aircraft. On the other hand, aircraft companies are now focusing on developing new and advanced light jets to increase their product portfolio and cater to diversifying customer requirements. For instance, in August 2023, Embraer announced that their Phenom 300 light business jet accounted for most light-jet deliveries in the second quarter and stood at 22 deliveries within the Latin American region.
Brazil Dominates the Market During the Forecast Period
The business aviation industry in Brazil is poised to witness significant growth in the future owing to the strong demand for business jets by high-net-worth individuals. The country has the highest number of business jets in Latin America and has also been a significant hub for business aviation operations. As of 2022, the country's total number of business aircraft amounted to 1,505 jets. Also, according to the global wealth report of 2023, Brazil gained 120,000 new high-net-worth individuals in 2022, the largest growth rate in the world.
Moreover, factors such as a noteworthy recovery in the Brazilian economy coupled with growth in the value of the Brazilian currency enabled the region to witness a significant increase in the number of HNWIs. The construction of new aviation infrastructure has also positively affected the market growth. For instance, in June 2023, the Catarina International Executive Airport in Brazil announced its plans to expand the number of hangars available from 12 to 25 hangars shortly, owing to the growing demand for business jet operations within the country.
