The results of Aviation Business Strategies Group's (ABSG) Annual FBO Fuel Sales Survey indicate that nearly 70 per cent of FBOs in the US and Canada suffered a decrease in fuel sales during 2020 versus 2019. According to ABSG principals John Enticknap and Ron Jackson, the overall survey results showed a depressed economy due to the ongoing pandemic with only 20 per cent of FBOs reporting an increase in fuel sales.

“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,” Enticknap says. “This is by far the most negative results we have experienced in the eight years we have been conducting this survey.”

He adds that not all the news was bad, as nearly 12 per cent of survey respondents indicated that they had increased fuel sales by at least five per cent, with nine per cent having an increase of more than eight per cent.

According to Jackson, the fairly robust charter market contributed to the one bright spot in an otherwise down year. “With the COVID-19 human distancing awareness recommendation, chartering aircraft and the personalised FBO environment became a popular choice as an alternative to airlines and crowded commercial terminals,” Jackson comments. “FBOs located primarily in the South as well as recreational and second home destinations reported steady transient traffic that helped buoy otherwise soft Jet A fuel sales.”

According to ABSG, confidence in the economy also suffered a tremendous blow during 2020 as 42 per cent of the survey respondents said the economy is headed in the wrong direction, with only 18 per cent providing a positive response. “By contrast, the results of last year's survey showed 73 per cent of respondents were positive about the direction of the economy while only seven per cent were concerned.”

A follow-on question from the 2020 survey asked FBOs whether they would be offering sustainable alternative fuel (SAF) to their customers during 2021. The survey results showed that 86 per cent of respondents said they would not be offering SAF with only one per cent indicating they would, while 13 per cent were undecided.

“This is similar to the results from last year's survey, and frankly, this response does not surprise us,” Enticknap explains. “We find there are still a lot of questions from FBO operators regarding the availability of the fuel as well as a higher cost factor. It will be interesting going forward to see if SAF will become mainstream as more-and-more aircraft operators adapt and adopt its use.”