Gulfstream momentum checked by Middle East conflict

Some business jet buyers have become “cautious” amid war in the Middle East.

The Middle East conflict eroded some demand in the first quarter for Gulfstream’s business jets and affected production of G280s, which Gulfstream partner Israel Aerospace Industries (IAI) assembles in Israel.

Speaking during Gulfstream parent General Dynamics’ first-quarter earnings call on 29 April, executives describe the impacts as relatively minimal but say they nevertheless disrupted what had started out a stellar quarter.

“We were having a spectacular quarter from an order standpoint… Then as the conflict started to take form we saw some slowing in order intake in the Middle East,” says General Dynamics president Danny Deep.

He also cites “some cautious concern from customers”.

General Dynamics’ aerospace business, which includes Savannah-based Gulfstream and aviation services provider Jet Aviation, secured $3.8 billion in new orders last quarter, down 25% from the prior month but still up from the same period of 2025.

The business turned a $493 million first-quarter operating profit, up 14% year on year.

Deep cites supply chain hiccups affecting IAI’s assembly in Tel Aviv of G280s. Following assembly, those jets are flown to Gulfstream for completion in Texas. IAI is also the assembly partner Gulfstream’s G280 successor, the G300.

“From a supply side, as you can imagine, some of what we get from [the Middle East] is impacted, and it’s really a labour force issue,” Deep adds. “We could see a small impact the longer this goes on. They’re still producing those airplanes, ready for us to complete.”

Gulfstream delivered 38 aircraft in the first-quarter, two more than in the same period last year. The deliveries included 31 large-cabin jets and seven mid-cabin aircraft, which include its G280.

Deep says all the G280s Gulfstream handed over last quarter had already been produced and in its inventory prior to conflict starting.

The US and Isreal attacked Iran on 28 February. Israel has also been fighting Hezbollah in Lebanon.