NAFA member Commerce Bank shares their latest article on private jet financing.
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.
This article was originally published by Commerce Bank on July 2, 2026.