How Much Does a Private Jet Cost?

What does a private jet really cost? It’s the number one question I get from clients who are considering buying a private jet. A private jet costs between $2M and $50M depending on size, age, maintenance status, depreciation, and market conditions. Annual operating costs also vary greatly by country and region due to the cost of living and the price of jet fuel. Still, it can be helpful to look at some averages to get a ballpark idea of the costs of owning a private jet—understanding that your mileage may vary.

In this article I will review the acquisition and operating costs of three very popular private jet aircraft. The Cessna CJ3+ in the light jet category, the Challenger 350 from Bombardier in the super-mid category, and the ultra-long-range Gulfstream G550.

The idea is not to compare these aircraft to one another, but to provide a broad industry view of the costs of owning a private jet. In fact, all three of these aircraft are superstars that have set the bar for quality and performance in their respective categories.

Breaking down the operating costs of a private jet

The table below outlines the acquisition and operating costs of the three aircraft. To better understand the data, lets first define what makes up these numbers. The acquisition cost includes the purchase price, inspection costs, legal and consulting fees, escrow fees, title search, and closing costs.

Operating costs are broken down into two categories. Annual fixed costs include pilot salaries, benefits, hangarage, insurance, training, subscription fees for aircraft manuals, flight planning software, navigation database services, and cabin connectivity costs. Direct operating costs are flight hour costs associated with operating the aircraft. They include fuel, maintenance, engine overhaul reserves, carbon and emissions offset programs, and various trip expenses, such as, crew meals and expenses, landing fees and deicing costs.

The total annual cost of operations assumes 200 flight hours per year, which is the average in the industry and incidentally, the amount of hours included in ¼ share of a fractional ownership program. It also assumes an average cost of jet fuel of $6.50 per gallon, which is the current national average.

Note that large private jets are expensive to purchase and operate. The flight hour costs of a large private jet can be three times greater than the operating costs of a light jet. Setting aside depreciation, which is the largest cost of owning a private jet, the cost of fuel is the single biggest operating cost. The annual fuel cost of the Gulfstream G550 is over $550,000.00 dollars.

If you’re considering buying a private jet, a good rule of thumb is to purchase the smallest aircraft that suits your travel requirements. Buying a larger aircraft than necessary is one of the biggest mistakes that buyers make when purchasing a private jet.

Another large component of the annual operating costs are pilot salaries and benefits. Salaries are increasing due to a shortage of qualified pilots. Recent rule changes by the Federal Aviation Administration for licensing airline transport pilots has caused a lack of qualified candidates as older pilots begin to retire. In the post-pandemic world, the lack of qualified pilots has driven salaries and benefits to new levels as the airlines try to add back capacity.

It's also important to note the costs which are not included in the data. Finance charges and loan origination fees are not included since that are highly dependent on the buyer. Additionally, fees charged by an aircraft management company to oversee the aircraft, flight crew, training and expenses are not included since they too are highly variable and based on the services provided.