Rajesh Kumar Singh and Allison Lampert

(Reuters) – Guy Stockbridge manages multiple businesses out of his central California headquarters, which includes landscape companies that spread across California and a utility business using solar energy in 17 other states.

Stockbridge is an avid flyer, as are his colleagues at Elite Team Offices in Clovis. Stockbridge and his family flew for years both privately and commercially out of Fresno (about 10 miles away from Clovis). After the COVID-19 pandemic, private ownership of a jet became increasingly attractive.

Covid added that “buying a jet was something I have been thinking about for many years.” Stockbridge spoke to Reuters via email.

He’s not the only one.

The shift towards private aviation that was seen by more wealth Americans as an essential luxury in COVID-19 has now begun to change. It is now a sought-after, but expensive alternative to premium tickets on commercial flights.

Many people chose to stay because it was convenient. Industry executives and analysts say they often see private-flying families, first-time owners of jets, and smaller and mid-sized companies flying privately.

Alton Aviation Consultancy found that premium travel was 80% for airlines in 2021, as opposed to 90% pre-COVID-19.

Many business jets are associated with top executives and entertainers. Research and consultancy WINGX has found that they account for 25% of U.S. air travel, nearly twice their pre-pandemic share.

And consultancy McKinsey & Company estimated that before the pandemic, only 10% of those with the means to travel privately did so.

You can fly private for a variety of reasons. Stockbridge was one of those people who owned a private airplane. Operators who charter planes either sell by the seat, or the whole aircraft. They also offer services that can sell fractions and shares of jets.

This all comes at a high price.

Stockbridge received this month a Cessna Citation M2 Gen2 light jet from Textron (NYSE.). He said it can make travel between his businesses in out-of-state a one-day trip. It can accommodate seven passengers and costs $5.85million.

Stockbridge spoke out about the benefits to business. Stockbridge was clear about the business benefits. “Our work outside of State is driving us to need a private plane, distance and time to get to our job are crucial.”

He said, “Yes, still flying commercially, but less often… maybe 10% commercial and 90% jet/charter.”

While charters and private aircraft services might be less costly than purchasing a plane, the prices are still high.

Jettly offers a booking platform that allows you to charter flights. A Gulfstream G280, with nine seats, costs $18,100. This compares to an average price for a New York-to Miami business-class ticket at $421 before taxes according to Cirium data for January.

For many, the price does not deter them.

Jamie Walker, Chief Executive of Jet Linx in the U.S., said that “I believe the people who are seeing convert from Commercial” is not returning to commercial.

According to Jet Linx’s website, Jet Linx charges $25,000 per-flight and a membership fee of $25,000.

Wheels Up Experience, a subscription-based company, stated that its members pay $80,000 per year.

Jet Linx sales of jet cards rose 40% last year, Walker reported.

Some other operators also see gains.

Megan Wolf is the chief operating officer of Flexjet, which provides fractionally-owned jets worldwide.

Although there has been an increase in supply of preowned business jets, the market remains strong. Jet Linx caps sales to ensure they can meet demand.

This boom has a positive impact on planemakers such as Textron and General Dynamics Corp (NYSE)’s Gulfstreamstream.

Textron’s quarterly earnings reported last week exceeded estimates and indicated that there has not been a leveling off in business jet demand.

Robert Stallard, Vertical Research Partners analyst said that “if anything demand has increased.”

According to FlightAware data, U.S. Private Aviation Traffic is now up by 15% compared with its 2019 levels. However, airline traffic has fallen about 13% according to FlightAware flight-tracking site FlightAware.

Analysts expect that a recovery in commercial flight will eventually bring some rich travelers back to scheduled flights. There are indications that the shift towards private aircraft could last, particularly on short-haul U.S. flight.

These flights not only result in major airlines pulling out of these routes due to pilot shortages but are also comparatively cheaper than private jets used for international trips.

AERLINE RECOVERY

It is not lost on big airlines.

Delta Air Lines, NYSE: The No. 3 airline. A 20% share in Wheels Up is owned by the U.S. airlines according to their fleet size.

Delta like many other U.S. carriers is enjoying a return to demand. The company’s revenues from premium-yield cabins with higher yields grew to 77% in the first quarter, compared to 27% last year. Atlanta-based Delta is seeing stronger business travel demand, with 10% less likely to return due to lower-paying leisure travelers.

Delta’s Chief Executive Ed Bastian admitted to the rise in private flight, while stating that most of these passengers also travel commercially.

Bastian stated in an interview that he doesn’t believe the plane has taken too much traffic off of it – some people, yes.

Private jet competitors see the world differently.

Jettly’s demand for flight services increased by more than 33% between December 2019-December 2021. Justin Crabbe from the Toronto-based firm said that more than 25% of this was due to passengers who have previously flown business class.

He said, “Some of them jump to the airlines’ chagrin.”