Honeywell forecasts record $283 billion demand for business jets

Honeywell International Inc on Monday forecast record global demand for new business jets over the next decade, projecting 8,500 deliveries worth USD283 billion, as demand for fractional ownership and tax incentives fuel growth in the sector.

The Charlotte, North Carolina-based technology and manufacturing company said its outlook survey predicts an average annual growth rate of 3% in new business jet deliveries through 2035.

Honeywell said deliveries are expected to be 5% higher in 2026 than in 2025, with aircraft utilisation also rising as 91% of surveyed operators plan to fly the same or more next year.

"The combination of recent economic growth, increasing demand for fractional ownership and a steady cadence of new aircraft development and technology upgrades have produced record levels of demand in business aviation," said Heath Patrick, president of the Americas aftermarket at Honeywell Aerospace Technologies.

The division of Honeywell provides safety and communications equipment for business jets, including cockpit information display systems.

Honeywell said the return of 100% bonus depreciation under US President Donald Trump's recently passed tax and spending measures also is expected to spur additional jet purchases by allowing businesses to deduct most of an aircraft's cost in the year it enters service.

Honeywell noted that 20% of global operators now have at least one aircraft on firm order, up from 17% last year, with stronger demand from private charter and fractional operators.

Fractional fleets have grown by 65% since 2019 to about 1,300 aircraft, the company said.

Regionally, North America is expected to account for about 70% of new jet deliveries over the next three years, followed by Europe at 14% and Latin America at 7%.

Honeywell's report also highlighted growing emphasis on sustainability, with 81% of operators saying that developing more fuel-efficient aircraft is key to meeting environmental goals, and 61% identifying sustainable aviation fuel as an effective solution despite ongoing challenges with cost and availability.