What Is the Operating Cost Of A Private Jet

Operating a private jet isn’t just about the purchase price – there are ongoing costs to consider as well. In this article, we’ll take a look at what you can expect to pay to keep a private jet operational.

What are the Operating Costs of a Private Jet

There are six main areas where private jet operating costs can be divided:

1. Fuel

2. Maintenance and Repair

3. Depreciation

4. Crew

5. Emergency Maintenance

6. Hanger and Storage Fees 

7. Customizations (if needed)

Fuel costs make up the largest proportion of private jet operating costs, typically accounting for around 40-60%. Maintenance and Repair costs are the second largest area of expenditure, typically making up 20-30% of total costs. Depreciation and Crew costs make up the remaining costs.

1. Fuel Costs of Operating a Private Jet

The price of fuel is the largest variable cost when operating a private jet, and can fluctuate greatly depending on the price of crude oil. Based on 500 hours of flying per year, a typical private jet will consume around 3,500 gallons of fuel. At $5 per gallon, fuel costs would amount to $17,500 per year. However, if the price of crude oil rises to $100 per barrel (roughly double the current price), then fuel costs would increase to $35,000 per year.

Considering the state of the economy and oil industry, one would be wise to budget ahead for increased costs.

2. Private Jet Operating Costs: Maintenance and Repair

All aircraft require regular maintenance and repairs, and private jets are no different. You can expect to pay around $1,500 per year for routine maintenance, such as oil changes and servicing. However, more major repairs, such as engine replacements, can cost considerably more. Based on an annual maintenance budget of 2% of the purchase price, major repairs on a $10 million jet could cost around $200,000.

3. Depreciation: the hidden cost of Operating a Private Plane 

Private jets depreciate in value over time, like all aircraft. However, they tend to hold their value better than commercial aircraft, due to the relatively low number of hours they fly and the fact that they’re typically used by wealthy individuals who can afford to care for them well. Nevertheless, you can expect a private jet to lose around 10% of its value in the first year, and 5-10% in subsequent years.

4. Crew

Operating a private jet typically requires a two-person crew (at minimum), including a pilot and a copilot. The salary and benefits for each crew member can vary considerably depending on their experience and qualifications, but you can expect to pay around $200,000 per year for a two-person crew.

5. Emergency Maintenance 

Jet owners incur significant recurring costs, starting with basic maintenance and on-the-ground downtime, regardless of where and how often they want to fly. But many jet owners forget that things can (and sometimes do) go wrong, resulting in significant unexpected costs.

Then there are the emergency maintenance costs. Replacement costs for a punctured tire are between $2,000 and $3,000.

6. Costs of Operating a Private Jet: Hanger and Storage Fees  

An aircraft with the type of price tags that private jets command need rigorous maintenance and stowage while not in use. You’ll need to rent or purchase hangar space at the airport or FBO, unless you happen to have a corporate hanger. The usual rate for a private hangar rental is around $3,000 monthly, but varies widely based on geo location and size of the jet.

7. Customization

You, as the buyer of a brand-new aircraft, will have complete creative control on the cabin’s layout and furnishings. It is possible to fly a jet in its factory settings, but most customers will customize it in some way, whether it’s by painting the inside a different color or installing a new set of furniture. But personalization doesn’t come cheap; some private aircraft owners have reportedly spent over $100 million on luxurious interiors.

What is the Operating Cost of a Private Jet: summary

Private jet operating costs can vary considerably depending on the size and type of jet, the number of hours flown, and the price of fuel. 

Average operational expenses are estimated to be between $500,000 and $1,500,000 per year. 

Private Jet Operating Costs Comparisons: owning vs chartering 

In comparison to purchasing a private jet, chartering one may save you both time and money, as well as the additional headache of managing its storage, maintenance, and operation.

To acquire a private aircraft is a significant financial commitment, with annual maintenance and operating expenditures running into the hundreds of thousands of dollars. On average, our calculations show that a typical private jet owner has to fly at least 100 hours per year for four to five years for the investment to be worthwhile.

There are more cost-effective methods to enjoy private aviation, such as fractional ownership (where you purchase shares of an aircraft) or chartering on a per-flight basis, if you don’t expect to travel this regularly.