McKinsey & Company released its first analysis of the business aviation industry at the NBAA-BACE convention, reporting that demand is outpacing the supply of aircraft, crews, hangars and maintenance capacity. Aviation International News covered the findings on October 26.
Business aircraft departures have grown 4.9 percent a year since 2019 and reached a record 3.9 million in 2025. North America accounted for 70 percent of global business flight hours that year. The average business aircraft flies about 19 percent more per year than before the pandemic.
Supply has lagged demand. New business jet deliveries run at about 65 percent of the 2008 peak of 1,290 aircraft. The global fleet grew by 730 aircraft in 2025, up from 500 in 2019, mainly because retirements fell from 300 to 100 aircraft. The older fleet is raising demand for maintenance, repair and overhaul, and hangar and ramp space is limited.
Fractional ownership is the fastest growing model. The fractional fleet rose from 990 aircraft in 2019 to 1,510 in 2025, a 7.3 percent annual increase, and its share of flight hours climbed from 14 percent to 20 percent. NetJets and Flexjet account for 92 percent of those hours. Corporate and private fleets grew 2 percent a year over the past decade, the slowest rate of any ownership model.
The report says consolidation is increasing among operators, FBOs and MRO shops as companies build capacity. It recommends that manufacturers raise production despite supply chain constraints and that operators and service providers plan years ahead for multiple demand scenarios. Departures fell at Chicago Midway, Oakland and Van Nuys and rose at Fort Lauderdale-Hollywood International, Miami International, Jackson Hole and Bozeman.
Source: Aviation International News - https://www.ainonline.com/aviation-news/business-aviation/2026-10-26/mckinsey-report-sees-shifting-bizav-market-capacity