FBOs Project An Increase In Fuel Sales For 2015
February 3, 2015 NBAA Schedulers & Dispatchers Conference, San Jose, CA — For the first time in several years, the FBO industry is predicting an increase in fuel sales for 2015 according to Aviation Business Strategies Group (ABSG) Principals John Enticknap and Ron Jackson.
Citing their Annual FBO Industry Survey conducted in January, Enticknap and Jackson said more than 60 percent of those responding predict an average increase in fuel sales of at least 2.5 percent. This projection follows another year when fuel sales were depressed with the majority reporting an actual decrease in sales in 2014.
“After a prolonged period of dealing with depressed fuel sales, we’re starting to see a glimmer of optimism amongst the majority of FBO owners and operators we encounter and are included in our annual survey,” Enticknap told a group of FBO industry leaders attending the National Business Aviation Association’s (NBAA) Schedule and Dispatchers (S&D) Conference. “Results of our annual FBO industry survey, which includes a comment section, indicate a current market that is yet to catch any real traction, as well as one that is being approached with guarded optimism.”
According to Jackson, the outlook for 2015 shows a perceptible increase in optimism over the results from the 2014 Annual FBO Industry Survey. “In our 2014 survey, the majority of respondents predicted at least a breakeven marketplace with only about 40 percent projecting an increase in fuel sales volume. In our recent survey for 2015, more than 60 percent predicted an increase in fuel sales which represents a positive upswing of 20 percent.”
In forecasting confidence in the economy, majority of survey respondents moved from having little or no confidence in 2014 to a comfortable middle ground position in 2015. “Last year, the majority said the economy was not moving in the right direction. For 2015, the majority say they are undecided. Again, we view this as an indication of guarded optimism,” Jackson explained.
“In what we call our high-water benchmark, 18 percent of those surveyed this year said they predicted an increase in fuel sales of five to eight percent. This compares to 10 percent
in 2014,” Enticknap explained. “For the really strong performers, eight percent said they expect an increase of more than eight percent which is the same result for the 2014 survey.”
An added question to this year’s survey queried respondents on whether the recent decrease in oil prices has affected the number of aircraft flying into their FBO. An overwhelming majority said the amount of traffic has remained about the same.
“What we did see in the comment section of our survey is a general observation that piston aircraft owners, and in particular the weekend enthusiasts, are starting to fly more with lower posted AvGas prices,” Enticknap said. “Also, many who responded indicated that aviation fuel prices will not come down as quickly as auto gas because there is still a lot of higher priced fuel in inventory at airport storage facilities.”
Enticknap said flight hours flown by general aviation and business aircraft, a key statistic linked to potential FBO fuel sales, continued to be flat in 2014. “As a result, we really don’t see flight hours increasing in the short term, even though fuel prices are coming down”, Enticknap continued. “Based on our survey findings, we forecast aviation fuel prices continuing to drop throughout 2015 with no appreciable increase in flight activity until the third quarter.”
Both Enticknap and Jackson will be attending the S&D Conference and will be available for questions at the ACUWKIK Booth #1723. 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 at the National Air Transportation Association (NATA) booth #1511 for a free registration for the next FBO Success Seminar Registration to be held March 9-10 in Las Vegas, NV. 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
