How Much Does a Private Jet Cost?

Before answering, there are many factors to consider when buying a private jet. The initial cost of the aircraft will cost $1.1 million to $90 million, brand new, however, used jets will still cost millions of dollars. Beyond the initial costs, there are many other costs to consider, such as fuel, maintenance and repairs, storage, registration, and flight crew costs. You will also want to consider where you will fly and how often you will use your private jet when selecting an aircraft type and budget for your private jet costs. We will also discuss the advantages and disadvantages of owning a private jet, along with how to finance your purchase. 

As mentioned, there are additional costs, to the jet itself, to think about when considering buying a private jet. 

The larger the jet engine, the higher the hourly cost for fuel. You will want to consider how much fuel you plan to use and what the hourly fuel cost averages for the private jet(s) you are interested in purchasing. The type of jet, tank capacity, gallons per hour of fuel burned, and the average cost of jet fuel in your region should all be considered when calculating estimated fuel costs.

The hourly rate refers to the total cost of operating a private jet per hour. Crew costs, handling fees, landing fees, and aircraft repositioning fees, are all examples of costs that go into the total hourly rate of operation. For example, a propeller plane averages around $2,000 per hour, whereas a large 10-16 passenger jet can run $7,500 per hour. 

Private jet insurance is available for liability, medical, hull coverage, and legal defense. The standard minimum liability covers up to $1,000,000 in damages and $100,000 per passenger, but higher premiums are available for more coverage and additional policies are required for hull (damage to the jet), and potential legal defense. 

Fees for landing and use of airports vary depending on the airport and the weight of the aircraft. Fees can also be added for long term waits, crew per diems, overnight, de-icing, etc. The clearance fees can amount to several hundred dollars, but are sometimes waived if refueling. 

Private jets are costly to maintain and repair and the amount will vary based on type of aircraft, age of the aircraft, and frequency of use. As a general rule, you can expect to absorb between $500,000 and $1,000,000 in maintenance costs annually. 

Unless you own an airplane hangar, you will need to factor the cost of storage into your annual operating budget. It is recommended that you are utilizing a minimum of 100 flight hours per year to justify the ownership of a private jet. As an example, a $1,000,000 private jet will require enough space to cost around $3000 per month to store. 

Your private jet will require an experienced flight crew to assist with passengers and operations. An overnight flight crew within the U.S. can cost approximately $750 for a midsize jet and can double for a long range flight. A full time flight crew for a large aircraft can cost over $200,000 per year. 

If you are not buying a private jet that is brand new, you may consider upgrades or add-ons to your used aircraft. You may wish to add value by upgrading the interior of your jet or decrease fuel cost by adding winglets to your jet. You may also be required by law to make certain upgrades to meet current requirements. For example, mandates may require certain avionics systems to be upgraded or installed to legally fly your private jet. 

The top five value added upgrades are --

Owning your own private jet can provide privacy and confidentiality for those who wish to avoid public air travel. No security checkpoints or lines of people in the airport. Celebrities and high profile business executives often fly on private jets for safety and security reasons. 

Private jets offer safety advantages to passengers which come at an added cost as compared to commercial aircraft. Private jet companies contract with third-party companies to ensure that they meet FAA requirements and regulations, which results in frequent safety checks at every level. Private hangers offer passengers a way to relax while minimizing contact with other travelers as they would encounter in a public terminal, thus increasing their safety. Safety is also increased with fewer passengers on board, shorter distances traveled to smaller airports, and the ability to fly above air traffic and inclement weather. 

Most people do not have the millions of dollars in available cash to buy a private jet, therefore, financing is the most popular method of purchase. There are several methods of financing available to acquire a private jet. 

Leasing a private jet is a popular option for many whose flight requirements are 50 hours or more annually and wish to have ownership benefits without the long term financial commitment. Leasing allows use of a private jet without the upfront purchase cost and also avoids depreciation at the end of the lease. 

Many lenders, such as traditional banks and aviation lenders offer personal loans for private jet financing. As with auto financing, factors such as age, make/model, history, and down payment will affect the terms and interest rates of your personal loan. 

Charter flight memberships are another option of acquiring the use of a private jet while maintaining the feeling of private jet ownership. Charter companies offer memberships, often with an annual and/or monthly fee plus the cost of the flight. Members enjoy a choice from a fleet of private jets, assistance with flight booking, flexible travel, security, and privacy. Chartering a jet can range from $1,300 - $6,000 per hour for medium sized jets and increase to $10,000 - $16,000 per hour for larger jets. 

As you can imagine, there are several advantages to buying a private jet. Not only does private jet ownership provide an elite status symbol, it also lends additional perks from privacy and confidentiality to accessibility and complete customization options for your private jet. 

By owning a private jet, you can avoid the hassle of public air travel which considerably cuts down on the number of travelers encountered. Private jets allow you to bypass security checkpoints and public travel registrations. 

Options for your own private jet are your choice, so you can customize your entire hull to meet your specific needs. Maybe a full kitchen is important for entertaining guests, or an office space to conduct business is necessary, or a full custom workout space is a top priority. 

The ability to travel to remote areas or destinations away from major airports is an additional advantage to buying a private jet.

As with any large purchase, there are also disadvantages to buying a private jet, such as a number of ancillary costs, operational challenges, and depreciation concerns.

Obviously, buying a private jet has a large upfront cost. Even if the purchase is financed, the down payment and likely upgrade costs are significant. Once the aircraft is ready to fly, you will incur ongoing maintenance costs. Parts wear down and break, debris collisions can happen, and fuel and fluids need replaced. 

Operating a private jet also requires crew members who are highly skilled to assist in the operation of your private jet. The size and subsequent cost of a flight staff depends on whether or not you pilot the plane yourself, the size of your private jet, the frequency of use, and the number of passengers transported.

The decision to buy or charter a private jet is not only dependent upon your budget, it also depends on your frequency and method of use. For example, if you fly frequently but stay at destinations for long periods of time, crew and storage costs will increase. Buying a private jet has higher upfront costs and maintenance costs, while chartering a private jet allows you to avoid these costs by providing an hourly fee for usage of the private jet. We have listed out the pros and cons of buying a private jet and explained how chartering a private jet works, which should help you decide on which method is best for your specific circumstance.