Demand for private jets has dropped sharply as tariff concerns and economic uncertainty unsettle high-net-worth buyers, according to a new Barclays survey of industry financiers and brokers. The downturn marks the sector’s steepest decline since the pandemic.
Sharp Drop in Business Jet Interest Recorded in April
Barclays’ Business Jet Indicator, which tracks five key metrics including 12-month outlook and pricing, fell from 52 in March to 40 in April. The 23% decline—measured from April 9 to 15—is the most severe since the COVID-19 crisis. Only inventory levels held steady while all other components declined, indicating broad weakness in the market.
Barclays analyst David Strauss noted that although a dip in sentiment was expected, the severity came as a surprise.
Tariff Worries Lead Buyers to Pause Purchases
According to the survey’s 65 respondents, nearly half (46%) said customer interest in purchasing business jets had declined since March, while only 10% reported increased interest. A staggering 93% believe new aircraft demand will be negatively impacted by tariffs, with most expecting a significant decline.
Used aircraft fared only slightly better: 67% predicted reduced demand, while 27% foresaw a moderate increase.
Tax Reform Could Reignite Jet Market
One potential boost for the struggling sector could come from pending tax legislation. Both houses of Congress have adopted a budget resolution aimed at extending the Tax Cuts and Jobs Act (TCJA). A central provision of the TCJA—allowing 100% first-year bonus depreciation on eligible equipment—has been phasing out since 2023.
If lawmakers restore the full 100% deduction, including retroactive eligibility, as proposed by former President Trump, private jets could regain appeal due to enhanced tax benefits.
