How much does it really cost to fly private? From jet cards to fractional ownership, we break down the business model behind NetJets — the world's largest private jet operator. With demand for private aviation booming post-pandemic, here’s what it takes to fly like a Fortune 500 CEO — and why it’s becoming more popular than ever.
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00:01What does it actually cost to fly private?
00:04And why are more people doing it than ever before?
00:07Private aviation is a multi-billion dollar business
00:10and companies like NetJets are changing how the ultra-wealthy move.
00:15Even in the smallest aircraft type in our program,
00:18you're talking today about an initial capital investment
00:22of more than $800,000 to buy a piece of an airplane.
00:26We have something like 40% of the Fortune 500 that are NetJets customers.
00:32And as major commercial airlines are trying to win back premium customers,
00:36can commercial aviation companies successfully keep them?
00:45NetJets doesn't sell private jets. It sells fractions of jets.
00:50Customers buy a share, as little as 1 16th, of a specific aircraft model.
00:55That idea, splitting jet ownership like a timeshare, unlocked a new market.
01:01Today we operate nearly 1,100 aircraft,
01:04which if you were comparing us to a commercial airline
01:07would make us the second or third largest on the planet.
01:12Unlike Charter Services, it owns and controls its fleet,
01:15allowing tighter control over quality, scheduling, and safety.
01:19The average NetJets customer flies with us for about 75 to 100 hours per year.
01:26Our typical customer will be somebody who is a principal of a privately held company.
01:31We have something like 40% of the Fortune 500 that are NetJets customers.
01:38Flying with NetJets doesn't come cheap.
01:40A fractional ownership share on a light jet like the Phenom 300 starts at around $850,000 upfront,
01:47plus about $325,000 per year in operating costs for 50 flight hours.
01:55For those who want a more affordable and flexible option,
01:57the NetJets card starts at $215,000 for 25 hours annually.
02:02That $215,000 jet card, that's the cost of four down payments on the average American home.
02:11Within the shared ownership model, we really have three cost components for the customer.
02:16You have the initial capital investment, which is a one-time investment
02:19where somebody's buying a piece of the airplane,
02:21and then they pay a monthly management fee.
02:24If you owned your own airplane, you'd have pilot salaries,
02:26and you'd have mechanic salaries, and you'd have hangar rent.
02:29So in our model, you're sharing that across the other members of the program.
02:33And then every time you fly, we bill you the variable hourly costs
02:37associated with flying that trip from A to B,
02:40which covers things like the fuel expense of the aircraft,
02:43the ground charges, and the handling fees,
02:45and the things that would go into operating an airplane from A to B.
02:50That business model caught the attention of Warren Buffett.
02:53And in 1998, Berkshire Hathaway bought NetJets and has held onto it since.
02:58You see in the luxury travel segment overall,
03:01people are making more of an investment in experiences than in things.
03:05That certainly has been a tailwind for us.
03:08You know, if I'm being honest, the commercial experience
03:10has not gotten any better over the last several years,
03:13and that has driven more people to want to fly NetJets.
03:16During the pandemic, demand for private air travel soared
03:20as people feared crowded airports and packed planes.
03:24In the U.S., business aviation traffic in 2021 hit record highs,
03:29surpassing the 2019 levels.
03:31And in 2021, saw over 3.3 million private jets worldwide,
03:37a 7% increase over pre-pandemic levels.
03:41Only about 10% of the people who met the financial, you know, norms or averages
03:48of private aviation were actually flying privately.
03:51And COVID certainly unlocked some portion of that addressable market.
03:55And then the big question was, would they go back to the airlines
03:58when the pandemic subsided and, you know, masks came off and vaccines went in arms?
04:03After the initial COVID boom, many private airline companies saw slumps in profits.
04:08But in Q1 of 2025, Berkshire Hathaway reported a profit bump in its service division,
04:14which it contributed to its aviation services.
04:18For NetJets, we're operating at 40, 45% larger than we were in 2019.
04:24So we've maintained record retention rates.
04:28Major commercial airlines are trying to claw back premium travelers
04:32by rolling out redesigned business class cabins, faster boarding, and high-end lounges.
04:38But for some flyers, the best perks aren't enough.
04:41Anonymity is key to our business.
04:44One of the appeals of flying NetJets versus owning your own airplane
04:47is that you're virtually untraceable.
04:50Whether you have concerns about appearances or whether you have concerns about safety,
04:55NetJets can provide that in a way that you can't get owning your own airplane.
05:00As the demand for private flights increases, so does the visibility of their impact.
05:04Each trip emits many times more carbon emissions per passenger than a commercial trip.
05:09And that's drawn growing scrutiny, especially as more celebrities and CEOs are called out for frequent short-haul trips.
05:16When Taylor Swift's private jet usage was tracked online in 2023, it sparked a wave of backlash
05:22and highlighted the growing divide between convenience and climate responsibility.
05:27Now, with the business booming, even the industry's biggest players are under pressure to address the carbon footprint.
05:34Sustainability is at the forefront for our industry right now.
05:37And the way that we're addressing it at NetJets is we are the largest buyer of sustainable aviation fuel in the industry.
05:45We offer carbon offset programs for our customers.
05:48We offset all of our own internal company flying.
05:51So anything that we do for maintenance flights or training flights or anything like that,
05:54we buy the carbon credits to offset.
05:56As commercial travel faces continued pressure from rising costs to growing delays,
06:01demand for more efficient, discrete options isn't likely to vanish.
06:05Private aviation remains a niche but profitable business,
06:09fueled by clients who value control more than cost.