Private Jet Flyers Face An Array Of Extra Costs
According to Aviation International News, a trade publication, private jet charter flyers departing the U.K. will see a 50% increase in Air Passenger Duty beginning in April 2026, rising to around $1,300 per passenger.
However, as demand cools and sellers of private flights compete with an array of deals for free hours, waived membership fees, fuel surcharge waivers, and such, industry professionals say there is no free lunch, literally and figuratively.
What's included and what's extra can make budgeting expensive charter and jet card flights even more difficult.
Hourly rates for fixed or capped-rate jet card programs that offer guaranteed availability are up 25.3% from the end of 2019, before the COVID-19-led demand surge.
However, newcomers who entered the market while the CARES Act waived the 7.5% Federal Excise Tax during 2020 have seen pricing increase by an average of 32.1% at the end of 2024's third quarter, according to an analysis of more than 80 providers and 500 programs by Private Jet Card Comparisons.
As of Q3 2024, the average hourly rate was $11,102, ranging from $6,799 per hour for turboprops to $19,104 per hour for long-range jets such as a Global 5000 or Gulfstream G650. Hourly light jet pricing averaged $8,078, compared to $5,600 per hour in 2020 and $6,023 in 2019.
The prices include repositioning fees, taxes, and fuel surcharges, and in some cases extra amenities.
The good news is that the percentage of buyers who were able to negotiate extra concessions increased from 50.2% in 2022 to 65.5% in 2023 and 69.6% this year.
The percentage of private flyers who said they could negotiate free hours beyond what was offered increased from 18.4% in 2022 to 25.6% last year and 45.2% this year.
During that same 24-month window, the number of jet card buyers who said providers were willing to extend their rate locks, typically 12 months, increased ten-fold.
However, what flyers are clawing back in negotiating with providers, they may give back when they get to the airport.
Big events like Formula 1, the Super Bowl, the U.S. Open golf tournament, and other marquee events that draw a crowd have long had extra fees to offset extra staffing costs, including security and airport fees.
Daniel Harris, managing partner of Los Angeles-based charter broker Ironbird Partners , says the event fees charged by FBOs , the terminals used by private jets that also serve as lounges, gas stations, and provide parking space, have been expanding what qualifies as a big event.
"I am seeing many more events with now event fees. Even normal football games were seeing event fees," he says.
For the F1 race in Las Vegas later this month, Prime Jet Chief Operating Officer Andrew Gulsrud posted on LinkedIn, "We've seen anywhere from $7,000 to $23,000 depending on the FBO and the aircraft size."
LakeAir Charter Founder Ginger Lake wrote, "We had a trip scheduled 11/18-20 in a (Challenger) 605 (large cabin private jet), not going for the race. Quoted $9,810 for a departure slot on 11/20. Owner canceled the trip and rescheduled his meetings."
FlyHouse CEO Jack E. Lambert noted, "Even the NFC championship in (San Jose, California) was ridiculous last year. Who would have thought?" Special event fees aren't the only extra charges private flyers face.
Catering costs can be sky-high.
When Harris found a service that sources private jet catering wanted $177.05 for a grilled chicken sandwich box for a flight departing Jackson, Wyoming, he made his own arrangements via a local restaurant and delivery service, securing a similar meal for $67.
"I've had it with catering. It's always underwhelming and insanely overpriced. I'm at a point where I hesitate to even offer it because the risk of disappointing the client is so high," says Julien Vernet, COO at Jet the World, which sells jet cards and on-demand charter flights.
Some operators ask flight attendants to source cheese and deli plates from local supermarkets. However, the cabin attendants are generally only on large private jets.
A representative from the company who handled Harris' request for a chicken sandwich says $100 of the cost is a service fee that covers sourcing, placing the order, following up to ensure everything is on track, and then tracking that it is delivered to the FBO and picked up by the private jet crew.
She adds that private jet catering packaging and preparation are different from regular restaurant deliveries, and the service only uses catering companies that have insurance and have passed health inspections.
Event fees and catering aren't the only extra costs private flyers face.
Deicing bills for large-cabin jets can range from over $30,000.
GrandView Aviation Charter Sales Supervisor Etienne Lamothe, a pilot, has seen deicing bills that were more than the charter cost for the trip.
Typically, the cost ranges between $1,000 and $10,000 depending on the airport, the type of fluid used, and the aircraft size. Deicing is billed on a per gallon basis.
Monarch Air Group CEO David Gitman says he tries to arrange to have the jets he charters for clients parked in a hangar overnight if he anticipates the need for deicing. "It's a known cost versus unknown," he says.
That's not always available.
Charter broker Unity Jets CEO Kevin Diemar says the best way to avoid unhappy customers is to warn them about the additional charges when they book the trip and ensure the post-trip charges are processed as quickly as possible.
Some jet card providers such as NetJets, Sentient Jet and Flexjet include deicing and catering as part of their programs.
Those who don't say that the customers who don't order catering or fly on routes where there is winter weather are paying for those who do.
flyExclusive, the fifth-largest charter/fractional operator in the U.S., spent $471,000 on deicing in 2023 and has paid out $441,000 this year. Last year, it flew 55,211 hours, which equals $8.53 per hour, which needs to be baked into its prices.
