Private Jets Face Increased Insurance Costs in the Gulf
The private jet industry in the Gulf region is facing an additional ‘war risk’ insurance cost of $50,000 per landing. This surcharge is expected to have a significant impact on the industry, with an estimated annual revenue impact of $850 million on Gulf-based private-jet operators.
The calculation is based on 17,000 landings per year, with each landing incurring a $50,000 surcharge. This figure is considered a direct cost to operators and does not include any potential pass-through to customers or indirect effects such as reduced demand.
If operators incur the surcharge on both arrival and departure, the impact could double to approximately $1.7 billion annually. Compared to the Gulf private-jet market’s 2022 valuation of approximately $28 billion, the surcharge represents around 3% of total market revenue.