Honeywell International Inc (HON:US), a global technology and manufacturing conglomerate, is standing firm in its positive outlook for business jet demand. In their annual Global Business Aviation Outlook, Honeywell forecasts a robust global demand for new business jets, estimating the delivery of approximately 8,500 new aircraft by 2033. Notably, the total value of these anticipated deliveries has risen by $4 billion, reaching an impressive $278 billion.
Private aviation experienced a surge, attributed to the pandemic, as affluent travelers sought safety and convenience. However, global flight activity is expected to decrease by 4% this year, influenced by factors such as inflation and the resumption of commercial air service on key routes.
Honeywell foresees that by the end of 2023, flight activity will surpass 2019 levels by at least 10%, with stability in 2024 and further growth in 2025. These projections stem from an accelerated surge in initial public offerings, rising corporate profits, and declining inflation rates. The influx of new users in business aviation is set to boost demand by 500 aircraft and lead to a 6% increase in flights over the next decade.
In addition to these promising insights, Honeywell has forged strategic partnerships. In February 2023, they announced an agreement with ExxonMobil (XOM:US) for the deployment of Honeywell's CO2 Fractionation and H2 Purification System in Texas.
"Our industry is on the upswing. Operators are showing confidence with plans to expand their fleets at a faster rate than any time in the previous decade," said Heath Patrick, President, Americas Aftermarket, Honeywell Aerospace.
Moreover, in September 2023, political figures showed their faith in the aerospace company. Markwayne Mullin and Ro Khanna both bet in favor of the aerospace company, while Lois Frankel bet against it. Frankel sold $1,000 to $15,000 shares in earlier September. Mullin bought $50,000 - $100,000 worth of HON stock while Khanna purchased $2,000 to $30,000 shares, coinciding with Honeywell's NREL partnership for UAV fuel storage.