3 Key Factors Driving On-demand Jet Charter Price Increases in 2021
There’s never been a year quite like 2020 before, especially in the aviation industry. As aviation companies scrambled to make the necessary changes needed to survive the pandemic, charter rates fell by 35 percent. These significantly reduced rates can be largely attributed to lockdowns, travel restrictions, reduced travel demand, and the Federal Excise Tax exemption created through the CARES Act.
However, as travelers adjust to the new rules and restrictions, on-demand jet charter pricing is returning to pre-pandemic levels, and here’s why that’s happening:
1. A resurgence in travel activity
Post-pandemic travelers are returning to the skies, and because of this, we’re starting to see an increased demand for charters. There’s also been a steadily increasing demand from those flying for business-related purposes. When virtual meetings aren’t cutting it, business execs and their teams are chartering private jets to get them where they need to be safely and efficiently.
Another group of travelers contributing to increased charter flight demand, especially seasonally, are snowbirds. As these northern travelers look for warmer destinations to escape the winter chill, on-demand jet charters headed south have been on a steady incline. With so many charters heading south, a lot of travelers are faced with repositioning fees, which slightly elevates their charter rates. Travelers heading in the opposite direction, on the other hand, are finding really great deals.
We’re also seeing increased demand from another group of travelers: first-time private flyers. These newbie flyers are turning to private jets, instead of flying commercially like they used to, to reduce the risk of transmitting the virus. Since private jets offer passengers a much safer way to fly with reduced touchpoints, higher sanitation practices, and reduced in-person contact, it’s become the preferred method of transportation.
2. The re-institution of the 7.5 percent FET
Enacted on March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act, provided an excise tax holiday for private travelers across the country. Travelers booking private charters enjoyed a 7.5 percent tax reduction on their charter bills, further reducing the cost of chartering a private jet in 2020.
However, as of midnight on the last day of the 2020 calendar year, the tax holiday ended, increasing the cost of private flights as we headed into the New Year.
3. Additional sanitation and cleaning efforts
Another factor contributing to the climbing charter prices is the need for increased COVID sanitation and mitigation efforts. In the interest of keeping travelers healthy, charter providers are employing more teams to make sure cleaning standards and expectations are met.
How to find on-demand jet charter deals
If your itinerary allows, be as flexible as possible with your travel plans.
When you speak with a Stratos private flight advisor, let them know you’re willing to depart earlier or later than originally planned. They’ll be able to provide more options through Flight Radar, Stratos’s newly developed innovative flight-tracking platform.
As aircraft positioning needs are matched to the traveler’s routing and date range, the software sends the Stratos flight advisor an alert, making sure travelers can receive the best options available.
And, of course, ask your private flight advisor about empty leg flights. These deeply discounted flights are perfect for savvy travelers looking for all the perks of private aviation without the hefty price tag.
If you’re ready to return to the skies on an on-demand jet charter this year, reach out to your Stratos flight advisor, contact us online or call (888) 593-9066. We’d love to provide you with some of the safest, most affordable air charter options available.
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