How Much Does It Cost to Lease a Private Jet?

Dry lease: The aircraft only. You take on crew, maintenance, insurance, fuel, and all operating costs. Lower monthly payment but significantly higher total cost once operating expenses are added. Suited to operators with an existing flight department.

Wet lease: Aircraft, crew, maintenance, and insurance bundled into one payment. Higher monthly cost but simpler budgeting. The lessee manages nothing operationally. Suited to individuals or companies without aviation infrastructure.

ACMI lease: Aircraft, Crew, Maintenance, and Insurance included. Fuel, landing fees, and operational variable costs fall to the lessee. A hybrid between dry and wet. Used mainly by airlines and operators managing seasonal capacity.

Fixed costs are the same every month regardless of how much the aircraft flies. The monthly lease payment is the primary fixed cost. Crew salaries, hangar rental, and insurance are also fixed. These costs run whether the aircraft sits idle or flies 40 hours that month.

Variable costs scale with usage. Fuel is typically the highest variable cost, often representing 25 to 35 percent of total operating cost. Landing fees, handling fees at FBOs, crew accommodation on multi-day trips, and de-icing in winter ($1,500 to $10,000 per event) are additional variables.

Understanding the fixed/variable split is important because it determines the effective hourly cost at different usage levels. A heavily fixed-cost structure (dry lease) becomes more cost-effective as flight hours increase.

Charter makes more sense below approximately 150 flight hours per year. At 150 hours, a charter client paying $5,000 per hour for a midsize jet pays $750,000 annually with no fixed costs, no crew management, and full flexibility to choose different aircraft for different missions.

A wet lease at $250,000 per month ($3,000,000 per year) for the same midsize jet at 150 flight hours produces an effective hourly cost of $20,000 per hour. That is over six times the charter rate.

The economics shift as flight hours increase. At 400 annual hours on a dry-leased aircraft with total operating costs of $1,800,000 per year, the effective hourly cost drops to $4,500. Chartering at the same volume would cost $2,200,000 annually. The dry lease wins.

Charter is more cost-effective below 150 flight hours per year. Leasing begins to compete with charter between 150 and 200 hours annually, depending on aircraft category and lease type. Above 200 hours per year, a well-structured dry lease with controlled operating costs can deliver a lower effective hourly rate than on-demand charter for the same category. Hogani Jets coordinates on-demand charter for clients who fly under 200 hours annually and can provide operator contacts for clients exploring lease structures at higher flight volumes.

Business use of a leased private jet may qualify for tax deductions, including lease payments, fuel, crew salaries, and maintenance. Meticulous records separating business and personal flights are required. The IRS scrutinizes private aircraft deductions closely.

Federal Excise Tax applies to all domestic US charter and certain lease arrangements. The rate is 7.5 percent of the amount paid, plus a $5.20 segment fee per passenger per flight leg. International flights departing or arriving in the US carry a $22.20+ per-passenger head tax. Tax implications of leasing are complex and vary by structure. Consult a qualified aviation tax specialist before signing any lease agreement.

Note: Hogani Jets does not provide tax advice. The above is general information for orientation purposes only.

Hogani Jets is an air charter broker. On-demand charter is the most cost-effective solution for the majority of private aviation clients flying under 200 hours per year. Hogani Jets coordinates on-demand charter through licensed Part 135 direct air carriers who hold full operational control and regulatory compliance for every flight.

For clients exploring lease structures as flight volumes grow, Hogani Jets provides market context and operator referrals. Contact charter@hoganijets.com or +1-855-660-0573.

How much does it cost to lease a private jet per month?

Light jet dry leases start from $25,000 to $65,000 per month for the aircraft. Midsize jets run $40,000 to $90,000. Super midsize jets run $70,000 to $160,000. Heavy jets range from $120,000 to $300,000+ per month for standard models

What is the difference between a dry lease and a wet lease?

A dry lease provides the aircraft only. The lessee hires crew, arranges maintenance, and secures insurance. A wet lease includes aircraft, crew, maintenance, and insurance in one monthly payment. Dry leases carry lower monthly fees but require significant operational management.

When does leasing make more sense than charter?

Leasing becomes competitive above approximately 150 to 200 flight hours per year. Below 150 hours, charter is almost always more cost-effective. There is no fixed monthly commitment with charter, making it the right structure for the majority of private aviation clients.

What operating costs are added on top of a dry lease payment?

Variable operating costs for a dry-leased midsize jet flying 200 hours per year typically add $600,000 to $900,000 annually on top of the base lease rent, bringing the total all-in budget to $1.1M to $1.5M per year

Can I put a leased jet on charter when I am not using it?

Yes. Many lessees place aircraft on Part 135 charter operations when not in personal use. Charter revenue typically offsets 20 to 40 percent of annual operating costs at realistic charter utilization. This requires a management agreement with a licensed Part 135 direct air carrier.

What is an ACMI lease?

ACMI stands for Aircraft, Crew, Maintenance, and Insurance. The lessee receives those four elements but handles fuel, airport fees, and other variable costs directly. It is a hybrid between dry and wet lease structures, commonly used by airlines and operators managing seasonal capacity.

Are private jet lease payments tax deductible?

Lease payments, fuel, crew salaries, and maintenance may be deductible when the aircraft is used for business. Meticulous records separating business and personal use are required. Tax implications are complex and vary by structure. Consult a qualified aviation tax specialist before signing any lease.

What Federal Excise Tax applies to private jet flights?

Domestic US charter and certain lease arrangements carry a 7.5 percent Federal Excise Tax plus a $5.00 per-passenger segment fee per flight leg. International flights departing or arriving in the US carry a $22.20 per-passenger head tax.

How long is a typical private jet lease term?

Short-term leases run days to a few months and carry higher monthly rates. Long-term leases span six months to several years and typically offer lower monthly rates. Most aircraft management companies require a minimum commitment of 12 months for dry leases.

Does Hogani Jets arrange private jet leases?

Hogani Jets is an air charter broker. On-demand charter is the recommended structure for clients flying under 200 hours annually. For clients exploring leasing as flight volumes increase, Hogani Jets provides market context and operator referrals. Contact charter@hoganijets.com for guidance.