Air Charter and Aviation Services Valuation
29 valuation methods · 43 industries · Results in under 10 minutes
In short
An air charter company is valued on the higher of two readings: its earnings before rent, less its lease obligations, and what the aircraft it owns would bring in an orderly sale. In a weak year the aircraft set the floor.
Who this is for
Owners of on-demand charter operators and aircraft management companies preparing to sell, bring in a partner or plan succession, and buyers who need earnings and aircraft value read together.
How is an air charter company valued?
VA values an air charter company on the higher of two readings. The first capitalizes earnings before interest, tax, depreciation, amortization and rent (EBITDAR), then subtracts the capitalized lease obligation, so leased and owned equipment compare on the same basis. The second is fleet value: what the aircraft it owns would bring in an orderly sale, from their original cost and age. The higher of the two sets the value, and the fleet value acts as a floor. A discounted cash flow, comparable companies and precedent transactions check the result. This tool is informational only. Output is driven by your inputs and does not constitute a formal appraisal or certified valuation.
What drives the value of an air charter company?
- Charter hours flown, and how much comes from repeat clients and jet card members
- Managed aircraft: the owners who place their aircraft with the company, and on what terms
- The operating certificate, safety audits and a clean record with the aviation authority
- The owned fleet: the types, their age and the maintenance status of each aircraft
- Pilot recruitment and retention, and the cost of training
- Leased compared with owned aircraft and hangars, and the lease obligations that come with them
What lowers the value of an air charter company?
- Charter revenue that depends on a few clients or one season
- Aircraft owners in the management program who could move their aircraft
- Inspections and heavy maintenance due soon on older aircraft
- Pilot shortages and turnover
How much is an air charter company worth? A worked example
Earnings against the aircraft
An air charter company has $15 M of revenue, $2.4 M of EBITDA and $600 K of hangar and aircraft lease payments, so $3 M of EBITDAR. At the model's base multiple of 5×, less $4.2 M for the leases capitalized at seven times rent, the earnings reading is about $10.8 M. The aircraft it owns, bought for $20 M and six years old on average, would bring about $8.84 M in an orderly sale. The model takes the higher reading, and after $2 M of debt and $1 M of cash the equity is about $9.8 M. In a year with $1.2 M of EBITDA, the earnings reading falls to about $4.8 M, so the aircraft set the value and the equity comes to about $7.84 M.
Illustrative figures from the industry model alone. A full report blends it with a discounted cash flow, comparable companies and precedent transactions.
Value your air charter company in under 10 minutes
- 1.Upload your financial statements, or type the figures in.
- 2.Confirm the add-backs and the industry details the model asks for.
- 3.Get a valuation range, the methods behind it and a PDF memorandum.
Which numbers matter most?
EBITDAR
Earnings before interest, tax, depreciation, amortization and rent. Adding rent back puts companies that lease their equipment and companies that own it on the same footing.
Fleet original cost
What the aircraft cost when bought. With their age it sets the orderly-sale value of the fleet. Without it, VA estimates the cost from the net value of equipment on the balance sheet.
Fleet age
The average age of the aircraft. Older equipment is worth less in a sale and needs replacing sooner. You can set it on the valuation page; without it, VA assumes a typical age.
Charter hours
Revenue hours flown in a year, split between repeat clients, jet card members and one-off trips. Buyers read the repeat share as the part of revenue that will hold.
Lease obligations
What the leases commit the company to. VA estimates the obligation from the annual rent and subtracts it from the earnings reading; buyers also read the lease liability on the balance sheet.
What do you need to value an air charter company?
- Profit and loss statements and balance sheets, ideally for the last three years
- Figures for the current year to date
- A list of add-backs: the owner's pay and perks, and any one-off costs
- Loan and lease balances
- The aircraft list: each with its type, year, original cost and maintenance status
- Charter hours and revenue by client, with jet card and management contracts
- Lease payments, and the lease liability on the balance sheet
Example scenarios
A slow year with a young fleet
Charter demand falls for a year, but the aircraft are young and well maintained. The worked example shows the aircraft setting the value when earnings drop, so the result does not fall with one year's flying.
Managed aircraft against owned aircraft
One company flies aircraft it owns; another flies aircraft that owners place with it for management. The second earns fees with little of its own capital tied up, and its value rests on its earnings and on how long the owners stay.
Further reading
Business Valuation Methods Explained: DCF vs. Comps vs. Precedent Transactions
The five business valuation methods professionals actually use (DCF, comparable companies, precedent transactions, SDE/EBITDA multiples, and asset-based), when each wins, and how they combine into one defensible number.
How to Value a Dental Practice: Collections, EBITDA, and What DSOs Actually Pay
Dental practice valuation explained: the percentage-of-collections rule, when EBITDA multiples take over, what drives DSO offers, and a worked example for a $900K practice.
How to Value an HVAC Business in 2026: SDE and EBITDA Multiples
HVAC businesses sell for about 2x to 3.3x SDE for small shops and 5x to 9x EBITDA for larger firms. See 2026 multiples by size and what drives the number.
Frequently asked questions
How is an air charter company valued?
On the higher of its earnings before rent, less its lease obligations, and the orderly-sale value of the aircraft it owns. In a weak year the aircraft set the floor.
Does the fleet reading suit aircraft?
It uses one age schedule for all equipment, built around trucks, with a discount for an orderly sale. Aircraft often hold their value longer, so for an older fleet the reading can sit below what an appraiser would find. When earnings set the value, as they usually do, it makes no difference; when the fleet sets it, an appraisal of the aircraft is the better guide, and a buyer will commission one.
Are managed aircraft part of the fleet value?
No. Aircraft that owners place with the company for management belong to the owners, so only the aircraft the company owns count toward the fleet reading. The management fees and charter margin on managed aircraft are part of the earnings.
How is leased equipment treated?
Rent is added back to earnings, and a lease obligation estimated from the rent is subtracted. That puts a leased fleet on the same footing as an owned one.
Does the operating certificate carry value of its own?
The model values the earnings the certificate allows. Buyers pay for a clean certificate and safety record because building them from scratch takes years, and they check both before closing.
Is this a certified appraisal?
No. This is an informational estimate. A bank loan, a partner buyout or an estate matter may require a certified business appraisal, which this does not replace.
Terms used on this page
- EBITDAR
- EBITDA before rent and lease costs. It puts companies that lease their equipment and companies that own it on the same footing.
- Orderly liquidation value
- What equipment would bring in a sale run over a reasonable period, rather than a forced auction.
- Enterprise value
- The value of the business itself, before debt is subtracted and cash added. The owner's proceeds come from what is left.
- Valuation multiple
- The number earnings are multiplied by to reach a value. It rises with how durable the earnings are and how easily a new owner can keep them.
As featured in
Value your air charter company
Get a valuation range with the methods behind it and a PDF memorandum in under 10 minutes.
Related industries
Logistics & Transport
Value a trucking, logistics or transportation company on the higher of its earnings before rent and what its fleet would bring in an orderly sale.
Trucking
Value an asset-based trucking company on the higher of its earnings before rent and what its fleet would bring in an orderly sale.
Heavy Haul
Value a heavy haul or specialized transport company on the higher of its earnings before rent and what its tractors and trailers would bring in a sale.
Marine & Port Services
Value a marine towing, barge or port services company on the higher of its earnings before rent and what its vessels would bring in an orderly sale.
Last reviewed September 26, 2026 against VA's valuation models.