How does a private jet depreciate?
The largest loss in value happens right after buying a new aircraft: once a jet is delivered and registered, the market treats it as used. After that, value declines more slowly, typically as a fixed percentage of the remaining value. This declining-balance depreciation means the absolute loss becomes smaller each year.
Buying a pre-owned jet skips the first-year loss. In return, maintenance costs usually rise with age and major inspections come sooner. The calculator shows both sides: depreciation over your planned holding period and the operating costs over the same years.
Aircraft markets are cyclical. Used prices can rise sharply when supply is tight and normalize again later. A model cannot predict such swings – it shows a typical path as a basis for planning.
Operating costs: fixed and variable
The cost of owning a private jet falls into two blocks. Fixed costs occur whether the jet flies or sits in the hangar. Variable costs accrue with every flight hour. The less a jet flies, the more the fixed costs drive up the price per hour.
- Fixed costs per year: crew salaries, hangar, insurance, training and simulator, management, navigation data and subscriptions
- Variable costs per flight hour: fuel, engine and maintenance reserves, landing, handling and overflight fees, catering
- Depreciation: accrues over time regardless of use and is often the largest single item
Own, charter or something in between?
Owning a jet means full availability, a dedicated crew and a cabin to your taste. Financially, ownership only pays off at high utilization, because depreciation and fixed costs spread over few hours become very expensive. If you fly less, charter means paying only for the hours you actually use.
Between the two there are hybrid models: jet cards with a prepaid block of hours and fixed terms, and fractional ownership, where several owners hold shares in one aircraft and split the fixed costs. For flexible one-off trips, empty legs are the most affordable option – repositioning flights that operate anyway.
What determines residual value?
Two aircraft of the same type and year can differ considerably in value. Buyers and appraisers focus on technical condition and documentation.
- Engine and airframe maintenance programs: an active hourly program noticeably supports resale value
- Flight hours and landing cycles: more cycles mean more wear on landing gear, airframe and engines
- Damage history: documented damage reduces value even after proper repair
- Upcoming inspections: a major inspection coming due is deducted from the price
- Avionics and cabin: upgrades for current airspace requirements and a well-kept interior
- Complete logbooks and registration history
How we calculate
- Depreciation: declining balance on the remaining value. If the aircraft is less than one year old at the start of a year (new purchase), the first-year rate applies, then the class’s annual rate.
- Pilatus PC-12: 6% in the first year, then 4% per year
- Turboprop: 8% in the first year, then 5% per year
- Light jet: 12% in the first year, then 7% per year
- Midsize jet: 12% in the first year, then 7.5% per year
- Super midsize jet: 11% in the first year, then 6.5% per year
- Heavy jet: 10% in the first year, then 6% per year
- Ultra long range jet: 9% in the first year, then 5% per year
- Operating costs per year: fixed costs plus variable cost per hour times flight hours per year, without inflation. Pre-filled with typical values for the selected class.
- Total cost: depreciation plus operating costs over the holding period. Cost per flight hour: total cost divided by all flight hours.
- Charter comparison: midpoint of the class’s typical hourly rate range times 1.3 to account for empty repositioning, for the same flight hours.
- Break-even: (average depreciation per year + fixed costs per year) divided by (charter cost per hour − variable cost per hour). If the result is 2,000 hours per year or more, charter is treated as cheaper within typical usage.
- Not included: financing costs, taxes and VAT, charter revenue from management programs, cost and value effect of engine programs, upgrades and market swings.
Frequently asked questions
How much value does a private jet lose per year?
Depreciation is highest in the first year after buying new; after that, value falls each year by a smaller percentage of the remaining value. The calculator uses typical rates per aircraft class. For an individual aircraft, value depends heavily on market conditions, maintenance status and flight hours.
How much does it cost to own a private jet per year?
On top of depreciation there are fixed costs for crew, hangar, insurance, training and management, plus variable costs per flight hour for fuel, maintenance reserves and fees. Depending on class and usage this quickly reaches millions per year. You can adjust every item in the calculator to your own figures.
How many flight hours make owning a private jet worthwhile?
That depends mainly on the class, purchase price and fixed costs. The calculator shows break-even hours: the annual flight time above which owning costs less than chartering the same hours. Below that threshold, charter is the better choice financially.
Is a pre-owned private jet cheaper to own?
On purchase price and depreciation, yes – the steep first-year loss does not apply. Operating costs are often higher, though: older aircraft need more maintenance, major inspections come sooner and avionics may need upgrading. For older jets, increase the variable costs in the calculator.
Are taxes and financing included?
No. Financing costs, VAT, tax depreciation and possible revenue from chartering the aircraft through a management program depend heavily on the individual case. The result is a rough model and not financial or tax advice.
What are the alternatives if owning does not pay off?
On-demand charter, jet cards with a fixed block of hours or a share in an aircraft. For flexible travel, empty legs are especially affordable: repositioning flights where you pay a fraction of the regular charter price.