Private jet ownership comes with an eight-figure price tag, but for the comparatively low cost of approximately $400,000 a year (plus buy-in costs), you can fly in comfortable convenience with fractional jet ownership.

The actual costs are going to vary based on how often you need the jet and what kind of program you buy into.

In this article, we break down every cost component and explain what options are available to you.

Read on for everything you need to know about the costs of fractional jet ownership and what fractional jet ownership actually is.

Fractional Jet Ownership Overview:

When you buy into fractional jet ownership, you are purchasing a deed to a specific aircraft. A nuanced element of this experience, however, is that you’re not necessarily always using that specific plane. You’re often buying into an experience.

A management company will handle every stage of the process, from booking your flights to managing the hangar itself. Typically, the provider will have a fleet of jets, and when you book a flight, they will connect you with whatever is nearest and most readily available.

Industry standards tend to indicate that a typical private aircraft will fly around eight hundred occupied hours every year.

So, assuming you buy into a 1/16th share, you’re purchasing approximately 50 hours of airtime.

The progression continues in that way, with a 1/8th share equaling 100 hours, a 1/4th share equaling 200 hours, and so on.

While every management company will have slightly different booking requirements, you can usually book a flight with only a few hours’ notice.

Exceptions typically include heavy periods of travel, such as major holidays, where you might need to book weeks or even months out.

Though your contract will generally be for at least sixty months, you can often sell your share of the plane, either to a private buyer or back to the management company.

Some services will also allow you to sell a portion of your unused annual flight hours.

The Three-Part Cost Structure

There are three common costs to fractional jet ownership. These include the initial payment, monthly fees, and hourly rates.

Initial Fees

The cost of fractional jet ownership from the beginning will depend on the size of the plane and the share that you purchase. Typical sizes include:

Light jets: Seat six to eight passengers and have a range of up to 2,000 miles. For a 1/16th share of 50 in-air hours, light jets will generally require a $200,000 purchase price.
Midsize jets: Seat seven to nine passengers and have a range of up to 3,000 miles. For a 1/16th share of 50 in-air hours per year, the cost can be up to $350,000.
Super midsize jets: Seat eight to ten passengers, have an upper range of 4,500 miles, and cost for a 1/16th share up to $600,000.
Large cabin jets: Seat 10 to 16 passengers, have a 7,000-plus mile range, and cost for a 1/16th share up to $900,000.

Of course, you’re always free to buy a larger share, in which case the cost rises proportionately to how much more you purchase.

For example, if you purchase a one-eighth share of a light jet, the price would increase to $400,000 annually.

The initial fee is a one-time cost. At the end of your five-year contract, you can either renew your agreement or sell your share for approximately 50% of the original price.

Monthly Management Fees

The upfront annual cost only covers access to the plane. Monthly management fees take care of the logistical requirements of keeping it stored, maintained, and functional.

This will include the cost of crew salaries, training, hangar rent, insurance, jet maintenance, and general administrative overhead.

The monthly management fees are fixed, meaning that you’ll be paying them regardless of whether or not you used the jet that month.

The fees will sometimes have an escalation clause of 3–5% built into the contract, which means that the amount you pay will scale up proportionately to the specified amount year after year.

The fees will be shaped both by the size of the plane itself and your fraction of ownership.

Light jets: $8,000 to $12,000 a month
Midsize jets: $12,000 to $18,000 a month
Super midsize jets: $18,000 to $25,000 a month
Large cabin jets: $25,000 to $35,000 a month

The figures described above reflect price ranges common to the 1/16th fractional ownership monthly fee. If you buy into a 1/8th share, your fees double.

Occupied Hourly Rates

Finally, you also pay fees for when you use the plane. These costs cover the fuel, the landing fees, the crew expenses, and whatever catering your plane provides.

Occupied hourly rates range from:

$2,000 to $3,200 an hour for light jets
$3,200 to $4,500 an hour for midsize jets
$4,500 to $6,500 an hour for super midsize jets
$6,500 to $9,000 an hour for large cabin jets

Some common fractional jet ownership services will also include positioning fees. So if the plane you are using is two hours away, you’ll pay for the time it takes to get the plane to you as well.

Additional and Hidden Costs

There are also a few hidden costs that may or may not increase the price of your fractional jet utilization.

The most common and unavoidable of these is the federal excise tax, which adds 7.5% to the cost of any domestic flight.

This means that if you’re paying $3,000 an hour, the government will take an additional $225 per hour.

You may also encounter fees associated with international travel. This includes landing costs and crew accommodations (since they will most likely need to stay overnight).

All totaled, international trips often cost around 50% more than the normal hourly quoted rate.

Additional fees include participants’ winter operations. If the crew needs to remove ice and snow from the runway, it could cost $500 to $3,000.

Most services offer basic catering that will include soda, coffee, water, and light snacks. If you’d like a premium service that includes hot meals or alcohol, it can add up to $150 per person in expenses to the flight.

There are certain exceptions. For example, Flexjet has a Red Label program that includes the cost of catering in its fee structure.

Some services will also charge an additional $2500+/- for peak day utilization. Which days are included will vary.

Generally, peak periods include two-week stretches of time surrounding major holidays like Thanksgiving and Christmas. It might also include big events like the Super Bowl.

Cost Breakdown for Major Providers

There are several well-known fractional jet services with well-publicized rates. These include:

NetJets: NetJets owns and operates close to 800 aircraft. While they have different price points, a 1/16th share of their common plane, the Phenom 300, comes with an upfront cost of $175,000 and carries a $10,500 monthly management fee with hourly operational rates of $2,800. This creates a first-year total cost of right around $440,000.
Flexjet: Flexjet owns and operates 300 luxury jets. Their Praetor 500 plane costs $240,000 upfront and carries a $13,000 management fee per month with $3,400 average hourly rates. First-year ownership costs for this plane are around $560,000. They also feature a Versatility Plus program that allows you to sell up to 25% of any unused hours, allowing you to recuperate at least some of the costs.
Wheels Up: Wheels Up is more of a membership program than an actual fractional jet service. This is usually used for very occasional users who fly 25 hours a year or less. The program costs approximately $30,000 in annual fees.

These are, of course, ranges. Actual costs will vary based on the plane, the ownership level that you opt in for, and all of the other factors we’ve described up to this point.

Craft Pod’s Revolutionary Approach to Private Aviation Access

Our competitors follow the standard three part cost structure described above. At Craft Pod, we have developed a more innovative pricing model.

Where most fractional jet ownership companies force you into ownership of a depreciating asset, at Craft, we allow you to invest in a professionally managed exchange fund that holds private aircraft as one part of a diversified portfolio.

Through our system, you contribute capital including appreciated stock to the Craft 721 Exchange Fund. In return, you receive proportional access to our fleet of Bombardier Challenger 300 and 350 Jets.

Our planes feature premium interiors, Starlink connectivity, and can comfortably seat nine passengers. Your capital remains invested, allowing it to potentially grow.

Rather than locking our investors into rigid fractional increments, we provide proportional access to our planes based on your investment level. With Craft Pod, you get the freedom and luxury of private aviation combined with the financial advantages of a structured investment approach.

Is Fractional Jet Ownership Right for You?

The minimum annual cost of approximately $300,000 per year provides high-level access to convenient luxury transportation with little advance notice required. It’s an ideal situation for business owners with unpredictable travel schedules or even multi-property families that make regular trips between their several homes.

There is a second option in the form of chartered jets that is often more affordable for people who require less than 50 flying hours per year. Chartered jets aren’t as flexible as fractional ownership programs.

You’ll usually need to book your travel days in advance, and you’ll have less flexibility in the plane itself. But it’s a convenient and more cost-efficient alternative under the right circumstances.

Of course, jet utilization is not about saving money. This is the sort of purchase you make to ensure options and accessibility.

If you want to travel independently and with the highest possible level of freedom that doesn’t cost eight figures, fractional jet ownership is without question the best option available. Contact us today to learn more about the most compelling offer in the fractional jet marketplace.