Why Buying a Plane (and Putting It in Charter) Makes More Sense Than Ever This Year

If you’ve been on the fence about buying an aircraft, 2025 might be your year. Between generous tax incentives, steady demand for regional charter travel, and the ability to turn an idle asset into revenue, this is one of those rare times when business and pleasure can actually mix — at least on paper.

Let’s talk about how it works, and why putting your aircraft on charter can dramatically improve the numbers.

1. You don’t have to shoulder the full cost of ownership

Buying a plane outright and letting it sit in a hangar is a quick way to make accountants sweat. But when you place your aircraft on charter, it’s working for you — earning revenue, covering fixed expenses, and keeping engines and systems exercised (which is better for long-term health anyway).

At Capital Air Express, we operate efficient, piston-engine aircraft that serve regional markets — think business trips, family getaways, medical transport, or cargo flights within a few hundred miles. Because our aircraft fly frequently, owners benefit from steady utilization that offsets operating costs.

Instead of paying full freight on hangar rent, insurance, and maintenance, charter revenue helps balance those line items — and your aircraft builds time doing meaningful work.

2. The tax incentives are still strong — but they’re shrinking

One of the biggest financial upsides of buying this year is the ability to take bonus depreciation on your aircraft.

Here’s the gist: under the Tax Cuts and Jobs Act, buyers could originally deduct 100% of the aircraft’s cost in the first year it was placed in service for business use. That percentage has been stepping down each year — and in 2025, it’s at 40%. In 2026, it drops again to 20%, and after that, it’s gone unless Congress acts.

So, by purchasing and placing your aircraft in service this year, you can still deduct a substantial portion of the acquisition cost right away — not slowly over several years.

Combine that with ongoing deductions for fuel, maintenance, insurance, and hangar fees, and the after-tax cost of ownership looks much more attractive.

3. Charter use helps solidify your “business purpose”

To claim those tax advantages, the IRS expects your aircraft to be used for a legitimate business purpose. That’s where partnering with a Part 135 operator like Capital Air Express gives you a major advantage.

When your aircraft is on our charter certificate, it’s not sitting idle — it’s generating revenue, carrying paying customers, and being used in a bona fide commercial operation. That strengthens your case for business use, helps document compliance, and makes your deductions much more defensible.

We handle the flight operations, maintenance tracking, and FAA compliance — you benefit from the tax treatment and income potential without managing the day-to-day logistics.

4. The market is strong for regional charters

Demand for affordable private flights continues to grow, especially in the 300–700-mile range where turboprops and light pistons shine. Businesses are turning to charter flights to reach smaller airports, visit multiple sites in one day, or transport employees and equipment efficiently.

That trend translates into higher utilization for aircraft in our fleet — which means more opportunities for your aircraft to generate income.

Whether you’re buying a Malibu, Saratoga, or similar aircraft, the economics of operating under a charter model are compelling: strong hourly rates, consistent demand, and lower direct operating costs compared to turbine aircraft.

5. The math works — especially when you factor in depreciation

Let’s run a simple example. Say you purchase a $900,000 aircraft this year and place it on our charter certificate.

• You could potentially deduct 40% of that cost ($360,000) in the first year through bonus depreciation.

• You’ll also deduct legitimate business expenses related to the aircraft (insurance, maintenance, hangar, interest).

• Meanwhile, the aircraft is flying revenue trips that offset your fixed costs.

In short: you’re reducing your taxable income, spreading out your ownership costs, and putting your capital to work — instead of parking it.

6. We make the ownership side easy

Our management program is designed for owners who want the benefits without the hassle. We handle:

• All FAA Part 135 compliance and crew coordination

• Scheduling and dispatch

• Maintenance tracking and inspections

• Billing and recordkeeping

• Insurance and operations oversight

You maintain full access to your aircraft for personal or business flights when it’s not on charter. We just make sure it’s earning its keep when you’re not using it.

7. Why act now

The bonus depreciation phase-out makes timing critical. Waiting another year could mean losing nearly half of that up-front deduction. On top of that, aircraft prices and hangar space availability tend to tighten late in the year as buyers rush to “place in service” before December 31.

If you’re thinking about buying an aircraft — whether for personal flexibility, business travel, or as a revenue-producing investment — this is the moment to do it right.

8. Final thought

Putting your aircraft on charter isn’t just about covering costs — it’s about turning an asset into an advantage. You get the pride of ownership, the flexibility of private travel, and the financial benefits of running it as a business.

At Capital Air Express, we specialize in helping owners make that model work — safely, efficiently, and profitably. If you’re curious about how it would look for you, we’re happy to walk through the numbers and discuss available aircraft options.