Survey: Nearly 70% of FBOs Report Decreased Fuel Sales in 2020

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Results of Aviation Business Strategies Group's (ABSG) Annual FBO Fuel Sales Survey indicate that nearly 70% of FBOs in the U.S. and Canada suffered a decrease in fuel sales during 2020 vs. 2019.
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Survey: 56 Percent of FBOs Report Increased Fuel Sales in 2019

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Fifty-six percent of U.S. and Canada FBOs surveyed say they sold more fuel in 2019 compared to 2018, according to the annual survey conducted by Aviation Business Strategies Group. Citing global health and economic uncertainty, the firm did not release a growth forecast for the FBO industry.
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When Negotiating the Best Fuel Supply Agreement, Preparation Is as Important as Price

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Your fuel supply agreement is one of the most important contracts in operating a successful FBO. Your lease with the airport authority is what puts you in business, but your fuel supply agreement is what keeps you in business.
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The Cost of Aviation Fuel, Part 2

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Recently, I was reading an article posted to Eye on the Economy on msnbc.com. The article was titled “As oil prices drop, Fed should get credit.” After reading the article, I decided to write Part 2 to a previous blog post titled The Cost of Aviation Fuel.

In the first post, I talked about continued increases in the cost of aviation fuel and what FBOs can do to mitigate high retail prices. We looked at a number of the reasons for the increasing cost of fuel:

  • The Fed policy of a weak dollar — a weak dollar requires more dollars to buy a barrel of crude oil.
  • The continued unrest in the Middle East.
  • Uncertainty with the federal deficit.
  • Speculators betting on the increased price of fuel.
  • Lack of offshore drilling in the United States.

Since then, here is what is happening in the world markets:

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The Cost of Aviation Fuel

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We think it’s fair to say we are all feeling the impact on fuel price increases over the last six months or so. As a pilot, I’m seeking the best fuel price and am modifying my flying patterns to get the best deal.

Historically, after an initial spike in oil prices, the market tends to settle down. So why haven’t we seen a stabilization in Jet A fuel prices? What’s causing the volatility in the open and spot fuel markets?

Besides the obvious affects of world events, including the disaster in Japan and political upheaval in the Middle East oil-producing regions, there are other underlying dynamics that contribute to rising aviation fuel prices.

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