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Do private jets depreciate in value?

The average depreciation rate for a private jet is 25% over 5 years. For example, if you purchased an aircraft today for $10 million, in five years it is estimated to be worth around $7.5 million. But there is quite a variety of depreciation rates. Ranging from 0.2% to over 60%.



Private jets are notorious for high depreciation, much like luxury automobiles. On average, a brand-new private jet can lose 10% to 15% of its value the moment it is delivered, with total depreciation reaching 30% to 50% within the first five years. In 2026, the rate of depreciation is influenced by several factors, including the total "airframe hours," maintenance history, and whether the aircraft is enrolled in an "engine program" (which provides predictable maintenance costs for the next buyer). Interestingly, the depreciation curve often "flattens" after about 15 years, where the plane reaches a residual "floor" based on its utility and parts value. For many savvy 2026 buyers, the "sweet spot" is purchasing a 5-to-10-year-old pre-owned jet, where the original owner has already absorbed the steepest financial hit, allowing the second owner to enjoy a high-performance aircraft with a much more stable resale outlook.

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A private jet can be a wonderful investment–find out if it is right for you. Investing in your own personal private jet is a wonderful opportunity to expand your assets and gain access to luxury travel. When deciding if buying a private jet is right for you, you need to consider what you have to gain from the purchase.

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A chartered jet can earn anywhere from $4,000 to $20,000 per hour. Leasing out your plane can help offset the cost of ownership. You can even start to turn a profit over time. With Jackson Jet Center's help, your private jet charters will earn a reputation for quality and luxury.

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Therefore, the wealth of those who possess private jets rises in proportion to the size of their planes. The typical owner of large luxury private jet has a net worth between $60 million and $70 million. The average wealth of owners of midrange and super-midsize aircraft is around $120 million.

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On average, business jets up to 25 years old may only have about 12,000 hours on them, and when they're well-maintained aircraft can easily last for 25,000 hours.

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This immediate bonus depreciation deduction was set to decrease to 30% by 2019 and was only applicable to factory-new aircraft. Now, under the guidelines of the 2017 TCJA, private jet depreciation rates that you can deduct jumped from 50% to 100% during the first year of owning the aircraft, both pre-owned and new.

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Typically, when you purchase something for your company, it is an asset. However, private jets depreciate just like other assets, which means you lose value. Over time, the value will depreciate and sometimes that depreciation is not consistent; it could be drastic.

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The average cost for a Midsize Jet is can cost around £4,000 on average per hour. Your private jet hire cost can vary depending on how long your trip takes (and how many passengers you have). Hiring a Hawker 900XP Midsize Jet in the UK can cost between £2,600 and £3,800 per hour.

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Under Part 135, most aircraft are individually owned by a single owner, whose average personal usage is approximately 480 hours a year. However, some owners may only fly their aircraft for 200 hours a year, so they may ask a plane management company or operator to charter it for them.

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The United States has the highest number of private jet registrations, with over 14,600 business aircraft. Brazil, home to the world's third-largest airplane manufacturer, ranks second in private jet ownership.

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According to the Institute for Policy Studies, a left-leaning think tank, only the wealthiest top 0.0008 percent of the population — folks with a median net worth of $190 million — manage to own a private jet. They represent a diverse array of ages, ethnicities, and career paths.

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