Flight plans: What business leaders need to know about private jet financing in 2026.
Key takeaways:
- Business aviation demand remains strong post-pandemic, as private travel saves significant time, while limited aircraft supply and long production cycles create a distinctive market environment for buyers in 2026.
- Interest rate shifts are influencing aircraft financing decisions, with owners balancing variable-rate loans, holding favorable terms, and exploring refinancing strategies amid uncertain rate direction and changing borrowing conditions.
- Selecting thoughtful financing structures and engaging lenders early can align aircraft use, ownership goals, and tax benefits like bonus depreciation, helping businesses manage capital effectively across the aircraft lifecycle.
For business owners and executives with a heavy travel schedule, switching from flying commercial to private can be transformational.
“Flying private is basically like a time machine, affording travelers the ability to visit multiple business locations and still return home to their family at the end of the day,” said Steve Olson, Commerce Bank manager, equipment finance, aircraft sales. “I hear that all the time.”
That sentiment has been driving activity in business aviation since the pandemic, according to Darren Lemkau, president and CEO of Commerce Bank ─ Colorado. He is seeing a high velocity in aircraft lending, with a mix of first-time customers, refinancing and buyers trading up. Even a tighter supply for new aircraft and parts for repairs hasn’t slowed things down.
“The thing about the aircraft business is it doesn’t start and stop on a dime,” Lemkau said. “Aircraft take a long time to produce.”
Couple the persistent demand with a convergence of market conditions, and it makes 2026 a unique moment for businesses looking into aircraft ownership options.
Navigating the interest rate landscape.
The interest rate environment is playing a key factor in today’s aircraft financing landscape. Many buyers who financed aircraft in the past several years used short-term, variable-rate loans, according to both Olson and Lemkau, and with rates fluctuating, the refinancing question is on the mind of many owners.
“Five years ago, rates were significantly lower than they were two years ago,” Olson said. As a result, borrowers with favorable interest rates are holding onto their existing loans as long as they can, while those with higher rates are exploring their options.
“It’s hard to foresee how that’s going to play out in the future,” he added.
Why financing structures matter.
“For those in the market for a private jet or other business aircraft, using the right financing structure is key,” Olson said. A well-structured loan helps businesses make the best use of their available capital and sets them up for success when it comes time to refinance, sell or trade up to a different aircraft.
Planning ahead is critical.
“It’s always helpful to work on the financing side in conjunction with finding an airplane,” Olson said. “Starting with a discussion about a buyer’s goals and needs — and getting ahead of the transaction — is a healthier way to approach it.”
How an aircraft will be used is central to the planning conversation. An aircraft that exclusively serves a corporate team making specific flights between two destinations is often very different from one an entrepreneur in a family-owned business uses for a mix of business and personal travel, according to Lemkau.
“What we try to do with customers as they’re going through the process is to get involved early so we can start showing them ideas around how different aircraft can be financed depending on what they’re looking at,” he said.
The impact of tax changes.
One recent development impacting business aircraft purchase decisions is the return of 100% bonus depreciation in federal tax legislation.
This provision allows businesses to deduct the full amount of a purchase of qualifying property, including aircraft opens in a new window, in the year it is acquired instead of spreading that deduction out over the life of the vehicle. Previously, bonus depreciation was set to drop to 20% in 2026 and be eliminated in 2027.
“It’s not a deciding factor, but it is a benefit for a lot of owners,” Olson said. For companies already evaluating a purchase, the tax advantage may provide an added incentive to proceed.
The value of strategic financial partners.
When considering aircraft ownership, working with an experienced financial partner can help buyers navigate the unique landscape.
Commerce Bank takes a consultative approach to aircraft financing options when working with clients. Lemkau noted it’s important to understand the full arc of an ownership plan, including how the aircraft will be used and what will happen when the loan matures.
“Aircraft finance is similar to our other businesses, except it’s a unique asset,” he said. “In addition to providing the capital, we’re also trying to provide customers value through ideas and structures so the capital doesn’t just allow the asset to be bought — it also provides a solution as you own it.”
