From tax incentives to accessing your own aircraft, there are several possible benefits to private jet fractional ownership. But is it possible to turn your new asset into a revenue stream?

Unfortunately, fractional ownership does not lend itself to profitability, but you may be able to recover the cost of your initial investment when it comes time to sell your share. Depending on which fractional ownership company you use, you may even be able to sell your share back to your provider at the end of your contract.

If you can’t make money from fractional ownership, what are the financial benefits of owning shares of a private jet? Here’s what you need to know before you invest in private jet fractional ownership.

How does private jet fractional ownership work?

Rather than purchasing and operating your own aircraft or using a broker to charter a private jet, fractional ownership is when you purchase a share of a private jet or fleet of private jets.

Fractional ownership shares typically come in multiples of 1/16 and are based on 800 flight hours, as per FAA regulations. That means if you purchase a ½ share of an aircraft, you’ll see roughly 400 hours in the air, while a 1/16 share would equal only 50 hours of flight time.

Can you make money with a private jet?

While it is technically possible for a private jet owner to profit by using their aircraft for charter flights, it’s uncommon. In most cases, private jet owners use charters to offset the cost of ownership, not to turn a profit.

With fractional ownership, you own a share of the private jet and won’t be able to profit from your private jet, though it may still be worth the investment.

Is fractional jet ownership worth it?

Private jet fractional ownership can be a great investment for you or your business, but it depends on how you typically use private jets. If you fly more than 50 hours per year and typically fly the same route, the initial investment might be worth it.

However, there are also downsides to fractional ownership. When you own a share of an aircraft, you lose out on the flexibility of chartering different types and sizes of private jets. If you need a larger jet capable of flying the whole family or want to save on operating costs for a short flight, you may need to use a charter despite owning part of an aircraft.

Fractional ownership also brings unexpected additional fees, such as maintenance and repair costs, that you should consider before purchasing shares.

Can you write off private jet fractional ownership?

Yes, you can use the depreciation of your private jet fractional ownership as a tax write-off. In addition to sharing the weight of the sales tax with your fellow owners, this is one of the principal benefits of fractional aircraft ownership. 

Want to learn more about fractional ownership and other types of private aviation business models? Check out our in-depth guide to private aviation. Ready to soar higher with a private jet charter? Start your free quote online or call 888.593.9066 to speak with a private flight advisor today.