A Look At FBO's Declining Fuel Sales In 2020 And The Ongoing Challenges

Fixed base operators in the U.S. and Canada have felt the impact from the COVID-19 pandemic in 2020 and expect a slow recovery, according to a survey.

Pandemic Slows FBO Fuel Sales

Credit: Aviation Business Strategies Group

Nearly 70% of FBOs in the U.S. and Canada reported a decrease in fuel sales in 2020, respondents said in an annual survey by Aviation Business Strategies Group. “There’s no question that 2020 will go down as one of the most economically depressed periods ever in fuel sales for the majority of the FBO industry,” said John Enticknap, a principal with Aviation Business Strategies Group.

FBO 2021 Fuel Sale Expectations Mixed

Credit: Aviation Business Strategies Group

In the survey, 39% of respondents said they expect 2021 fuel sales to equal those of 2020, while 18% expect sales to decrease and 42% expect sales to increase.

FBO Confidence In Economy Wanes

Credit: Aviation Business Strategies Group

Confidence in the economy suffered a blow during 2020, according to the survey of FBO operators. A total of 42% of those responding said the economy is heading in the wrong direction, while 40% are undecided and 18% say the economy is heading in the right direction. By comparison, in 2019, 73% of operators responding said they were positive about the direction of the economy.

Sustainable Alternative Fuel Plans

Credit: Aviation Business Strategies Group

Most FBO operators, 86%, said they do not plan to offer sustainable alternative fuel to customers in 2021, while 13% are undecided and 1% plan to offer it, according to the survey. FBO operators have many questions surrounding fuel availability and the cost of SAF, said John Enticknap, a principal with Aviation Business Strategies Group.

FBO Operators Face Challenges

Credit: Aviation Business Strategies Group

FBO operators say their greatest challenge and concern is the continued effect of the COVID-19 pandemic on the economy, transient aircraft traffic and how to keep a service team intact. Other concerns include rising costs of Jet A and Avgas, increases in government regulations, rising airport fees and increased taxes, increases in insurance premiums and whether rhetoric of green energy will slow economic recovery and with it, flight department activity.