Thousands of travellers probably wished they owned a private jet after a disastrous holiday travel season. If they could afford one, Bombardier would be happy to help them out.
Driving the news: Canadian jet maker Bombardier boosted its 2023 forecasts at its latest earnings call after doing gangbusters last year and projecting demand for private jets to remain sky-high despite a down economy (and public shaming around private travel).
- Bombardier capitalized on an appetite for swanky soaring, delivering 123 planes in 2022 and has plans to launch its near-supersonic Global 8000 jet in 2025.
Why it’s happening: While many people are pinching pennies, that’s not true of private fliers. “The resilient start to 2023 for bizjets and luxury goods shows that high net worth individuals are still spending,” per a Desjardins note, “We expect this trend to continue.”
Zoom out: And it’s not just private jets. The global luxury goods industry likely did ~€1.4 trillion in sales last year, per Bain & Company, surging by 21% from the year before. With China set to really open up this year, those numbers are projected to improve further.
- Luxury automakers Ferrari and Rolls-Royce both broke records last year, while fashion brands like Coach, Ralph Lauren, and LVMH all had massive 2022s.
Why it matters: With luxury goods surging, companies will be motivated to expand their luxury arms, potentially at the expense of choice and innovation for everyday consumers. Kiiiinda like Bombardier did when it shifted to essentially only selling private jets in 2020.