Results of Aviation Business Strategies Group’s (ABSG) Annual FBO Fuel Sales Survey indicates that fuel sales were mixed but mostly stagnant in 2024 following a down year in 2023.  

According to ABSGs Principals John Enticknap and Ron Jackson, nearly 60 percent of reporting FBOs experienced a decrease or same fuel sales compared to 2023. Although fewer FBOs reported a decrease (36%) in 2024 compared to 2023, 22 percent reported the same fuel sales which is the highest percentage recorded for this category since the inception of the survey in 2014. 

With 35 percent of survey respondents indicating an increase in fuel sales of one to eight percent, the top FBO performers, those indicating an increase of more than eight percent, saw a decrease in fuel sales year-over-year totaling six percent. (refer to graphs)

“After a robust recovery in FBO fuel sales in 2021 following the pandemic, we’ve seen a gradual deterioration in fuel sales across most geographic markets,” Enticknap said. “The results of our recent survey would indicate that the industry has entered into a period of stagnation where the highs and lows seem to be evening out.”

Jackson said that survey respondents expressed various factors that contributed to relatively flat or stagnant fuel sales.  

“Underlying contributing factors reported in the survey included larger, more fuel efficient aircraft capable of tankering through scheduled stops without taking on fuel; rising cost of aircraft ownership which forces fringe customers out of the marketplace; and the higher costs of adding much needed hangar space to expand base customer revenue,” Jackson explained. “In addition, several survey respondents indicated there has been a marked slow-down in Part 91 aircraft traffic which has largely been the bread and butter of their business.”

Decrease in Business Aviation Flight Activity

According to Argus International in their 2024 Business Aviation Review, business aircraft flight activity in North America declined in 2024 for the second year in a row. By segment: Part 135 operations were down 3.5% representing 45,249 fewer flights while Part 91 flight activity dropped 4.8% year-over-year, a decrease of 78,231 flights.

“This data validates the feedback received in the comment section of our fuel sales survey”, Jackson said.

Question on Economy (Reference associated graph)

Another survey question probes the level of confidence that FBO operators have in the current economy: ‘Is the economy headed in the right direction?’

While 37 percent said yes, the economy is headed in the right direction, a majority of respondents, 43 percent, said they were undecided. Only 20 percent said ‘no’ which is a large drop from last year’s survey where 53 percent said the economy is not headed in the right direction.

Expansion of Hangar Space (Reference associated graph)

As part of our survey, respondents were asked: Are you planning to add more hangar space? The respondents were given four choices. Here are the results:

• 8%-Yes, add T-hangars
• 27%-Yes, add box/storage hangar
• 13%-Yes, Add both T-hangers and box/storage hangar
• 52%-No, not planning to add hangar space

Top Five FBO Industry Concerns

Included in fuel sales survey was an opportunity for respondents to provide their main concerns for their FBO and/or the FBO industry. The following are the top five mentioned:

1. Regulatory Issues: Complicated regulatory requirements; expensive cost of oversight; compliance issues; taxes.
2. Staffing Issues: Finding and keeping qualified employees; turnover of staff which leads to higher costs in training. Additionally, the strain of new staff not having experience and safety issues that come with it.
3. Costs of Airport Improvements: Not able to generate enough revenue to keep up with the increasing costs of airport improvements.
4. Rising Operating Costs: Paying more for insurance rates; keeping up with higher employee pay rates; rising costs for aircraft parts and higher hourly rates causing more customers to want to argue the invoice.
5. Return on ROI for Improvements: Resistance from potential hangar tenants to pay higher rental fees to support return on our investment. Although several survey respondents indicated there are waiting lists for hangar availability, cost of new hangar construction is prohibitive.