The demand for commercial air travel has decreased as consumer confidence has plummeted. According to the most recent Barclays poll of business jet financiers and broker-dealers, even wealthy travellers are retreating. The study, which involved 65 respondents and was conducted from April 9 to 15, found that customer interest in purchasing business aircraft had decreased by 49% since March.
Pricing and the 12-month outlook are two of the five measures used by the Barclays Business Jet Indicator study, which was released last week, to evaluate the market’s condition. Inventory levels were the only measure that decreased between mid-March and mid-April. The composite score thus dropped from 52 to 40.
At 23%, the percentage decline in the most recent poll is the biggest Barclays has seen since the Covid pandemic. David Strauss, an analyst at Barclays, told CNBC that he anticipated sentiment to wane, but not by that much. According to Barclays, a composite score in the low 40s signifies a slowing market.
The book-to-bill ratio of aircraft manufacturers, a key indicator of their financial health, is correlated with this metric. According to Strauss, a score of 40 indicates that the manufacturers’ new orders are worth approximately 10% less than the ones they are already fulfilling.
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