2016 FBO Industry Annual
Fuel Sales Survey and Forecast
Forecast Remains Optimistic for Increase in 2016
January 19, 2016 NBAA Schedulers & Dispatchers Conference, Tampa, FL — More than half the FBOs in the U.S. reported increased fuel sales in 2015 compared to 2014 according to Aviation Business Strategies Group (ABSG) Principals John Enticknap and Ron Jackson.
Citing their Annual FBO Industry Fuel Sales Survey completed earlier this month, Enticknap and Jackson said 54 percent of those responding reported an increase of at least 1 to 4 percent. Of these, 15 percent indicated an increase of 5 to 8 percent while 16 percent said they had more than an 8 percent increase.
Benchmarking past survey results, Enticknap and Jackson said that FBO fuel sales results have steadily improved over the past three years with 43 percent of FBOs reporting an increase in 2013 and 49 percent stating an increase for 2014.
“This is the first time since we started the survey that more than 50 percent of the respondents experienced an increase in fuel sales over the previous year," Enticknap said. “Although the benchmark numbers show a positive trend, nearly 30 percent of the FBOs participating in our recent survey had a decrease in sales. This is still a fractured marketplace that is showing some positive signs of recovery.”
According to Jackson, the outlook for 2016 remains optimistic with 58 percent of FBOs surveyed predicting an increase in fuel sales over the 2015 results. Of those, Jackson noted that 40 percent expect an increase of 1 to 4 percent with the remaining 18 percent forecasting an increase of at least 5 to 8 percent.
“Looking ahead, more than 90 percent of surveyed respondents said they expect to have the same or increased fuel sales this year compared to their 2015 results,” Jackson said. “If this forecast holds up, 2016 could prove to be a watershed year for the industry.”
In forecasting confidence in the economy, the survey respondents were divided on the question with 41 percent indicating the economy was not moving in the right direction, 27 percent saying it is and 32 percent undecided.
An added question to this year’s survey queried respondents regarding the growing trend of transient aircraft customers not purchasing any fuel.
“Nearly half the respondents indicated that up to 40 percent of aircraft customers coming onto their ramp did not buy fuel,” Enticknap said. “With the current U.S. FBO business model relying on fuel sales to fund their operation, this is an alarming development.”
Enticknap said this trend is due in part to the practice of more flight departments tankering fuel from their home base through to their destination and then back. “Add to that the fact that newer turbine aircraft are more fuel efficient and don’t need to take on as much fuel as they used to. Therefore, it’s becoming more imperative that FBO operators charge customers a ramp fee as well as a fee for the use of their facility. As we teach in our NATA FBO Success Seminar, every customer must contribute to the revenue base in order to keep the operation viable.”
Both Enticknap and Jackson will be attending the NBAA Schedulers & Dispatchers Conference and will be available for questions at the ACUWKIK Booth #706. Together they write an industry blog called FBO Connection which is published by AC-U-KWIK as part of their AC-U-KWIK Alert eNewletter.
In addition, there will be a drawing for a free registration for the next NATA FBO Success Seminar Registration to be held March 8-9 in New Orleans, LA. Registrants will receive a free copy of Enticknap’s and Jackson’s new book, FBO Survival! 10 Tips to Keep Your Operation Lean, Mean and Profitable. The free registration and book are valued at more than $700. Enticknap and Jackson are the facilitators for the acclaimed NATA seminar.
About Aviation Business Strategies Group
Aviation Business Strategies Group (ABSG) was founded in 2006 by aviation fueling and FBO services veteran John Enticknap and aviation marketing practitioner Ron Jackson. Through a series of seminars, workshops, webinars and personal business coaching, the team at ABSG has helped FBOs solve practical problems and create winning solutions. ABSG also offers an integrated customer service training program called Don’t Forget the Cheese!© and a companion FBO employee team building program titled, Soar With the Eagles, Fly with the Geese©. In 2008, Enticknap and Jackson began teaming with the National Air Transportation Association (NATA) to teach the acclaimed FBO Success Seminar Series. They also write a blog for AC-U-KWIK’s FBO Connection e-newsletter. Ph: 404-867-5518 www.ABSGgroup.com