FBO fuel sales in 2024 were stable but stagnant, according to results from the Aviation Business Strategies Group’s (ABSG) annual survey, released on the eve of NBAA’s Schedulers & Dispatchers Conference in New Orleans. ABSG has been conducting its survey since 2014 to take the pulse of the FBO market.

While 7% of respondents to ABSG’s survey this year indicated that they saw fuel sales increase by more than 8% versus 2023, 22% reported that their fuel sales remained static year-over-year, the highest response in this category in the survey's history.

Overall, 58% of respondents either saw a reduction or no change in their fuel sales—the same total of these categories that ABSG principals John Enticknap and Ron Jackson noted in the previous results comparing 2023 with 2022.

“After a robust recovery in fuel sales in 2021 following the pandemic, we’ve seen a gradual deterioration in fuel sales across most geographic markets,” said Enticknap. “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.”

When asked what they viewed as the contributing factors to the malaise, survey respondents listed several factors such as larger, more fuel-efficient aircraft capable of tankering fuel; rising cost of aircraft ownership, which forces fringe customers out of the market; and the increasing cost of adding more hangar space to expand base customer revenue. “In addition, several survey respondents indicated there has been a marked slowdown in Part 91 aircraft traffic, which has largely been the bread and butter of their business,” explained Jackson.

Data from Argus International backs up this last hypothesis: business flying declined for the second year in a row. In 2024, Part 135 activity was down 3.5%, while Part 91 decreased by 4.8%.

The survey also attempts to gauge the respondents’ confidence in the economy, asking if they believe it is headed in the right direction. This year, a majority (43%) indicated that they were undecided about the direction, while 20% responded in the negative.

On the topic of adding hangar space, 52% said they would not be building hangars, while 27% plan to add large box or community hangars; 8% said they would increase their number of T-hangars; and the remaining 13% indicated they intend to add both.

Lastly, the ABSG asked the survey takers to list their top five industry concerns. Among those listed are regulatory concerns and compliance issues; staffing training and turnover; the increasing cost of airport improvements; burgeoning operation costs such as salary and insurance; and the reluctance of tenants to pay higher rents to support the return on investment for improvements.