Private jets are in high demand but short supply. This company hopes its flight-sharing service can help plug the gap.

• A spike in demand for private jet travel has created a shortage of planes.
• XO is operating shared chartered flights as a solution to supply chain troubles across the industry.

The growing demand for private air travel is outstripping the supply of private jets, according to XO, one of the largest private aviation firms in the US.

The company launched in 2006 and is based in Fort Lauderdale, Florida.

Its services allow flyers to share chartered services. They also have the option to create new flights and make unused seats available to purchase to fellow flyers. This can all be done through an app, which is available to members.

Travelers also have to option to charter a full aircraft if clients are flying with family, colleagues, or even on their own.

The spike in private jet fliers comes amid health concerns related to flying commercially during the pandemic. But as many lean towards high-end travel, there are not enough private jets to accommodate them.

Vinay Roy, XO's senior vice president and head of product, told Insider: "Those who wanted to fly continued to do so, either because they wanted to maintain social distancing at the airport or because commercial airlines were canceling flights to less popular destinations."

Thomas Flohr, the founder and chairman of XO's parent company, Vista Global, previously told Insider's Thomas Pallini it had added 15 light jet aircraft to its dedicated fleet of charter planes, due to "explosive" membership growth since April 2020.

The private aviation industry is not alone in its struggle, as businesses in all corners of the economy have been hit hard by supply chain problems. Consumer products including electronics and cars are low in stock and prices are spiking as a result. A UBS note estimated that in April, used cars saw their largest monthly price increase in 68 years of tracking, with prices rising between 8.2% and 9.3%.

According to the company, XO's services are tackling the problem head-on. Some other operators in the private aviation industry struggling to do the same, however. CNBC reported that private aviation firm NetJets halted sales of jet cards and leases for light aircraft.

XO's shared-flight option has particularly grabbed the attention of consumers this year; one million search queries were conducted on XO's mobile and web applications, Roy said.

The idea is based on the fact that, on average, there are fewer than three passengers on a private aircraft at any given time. XO's shared-flight program allows 10 or more travelers to join an already booked flight. This can increase the efficiency of seating capacity by 230%.

The option increases the existing supply base of private jets to be used much more efficiently - and it reduces the cost for flyers.

"On average, if you book a private charter by seat, you are paying 90% less than if you had booked the entire charter," making private flying more accessible as a result, Roy said.

While most of XO's clients have experienced flying privately before, many have not, according to Roy. "In June 2021, we saw a 56% increase in first-time chartered clients compared to the same period last year,"he said.

Once XO members have booked their seats through the app, Roy said the company curates a seating plan for families or friends who wish to sit together.

And of course, with private flying comes premium perks. These include being greeted at the private jet terminal to complimentary in-flight Wi-Fi on XO's sleek jets.

XO facilitates international flights but according to Lynn Fischer, the company's chief marketing officer, domestic chartered services are the most active. "We hope to see more international flights now that the restrictions are lifted in the US," Fischer told Insider.

Those who previously flew commercial have enjoyed traveling in a different way and plan to stick with it, Roy said. "During the next five years, we expect private aviation to become a much more common mode of travel especially after the pandemic," he added.