The Economics of Aviation Fuel

Aviation fuel (Jet-A) pricing varies dramatically by location, supplier, and purchasing arrangement. At a premium FBO at a popular airport, retail fuel can cost $8-$12 per gallon or more. At a competitively priced facility nearby, the same fuel may be available for $5-$7 per gallon. For an aircraft burning 200-300 gallons per hour, these price differences translate to thousands of dollars per flight — and tens or hundreds of thousands of dollars per year.

The challenge for individual aircraft owners is that accessing the best fuel prices requires volume commitments, established relationships, and market intelligence that are difficult to develop independently. Plane Selection solves this problem by aggregating fuel purchasing across our entire managed fleet, creating the volume and leverage needed to negotiate preferential pricing at FBOs worldwide.

Fuel Procurement Strategy

Our fuel procurement approach combines three complementary strategies to minimize your fuel costs:

Negotiated Contract Pricing

We maintain negotiated fuel pricing agreements with hundreds of FBOs across North America, Europe, the Middle East, and Asia-Pacific. These contracts provide our managed aircraft with cost-plus or fixed-discount pricing that is significantly below posted retail rates. Key elements include:

• Volume-based discounts: Our fleet's aggregate fuel consumption qualifies for volume pricing tiers that individual operators cannot access
• Cost-plus arrangements: At many locations, we have negotiated cost-plus pricing that ties the fuel price to the wholesale cost of fuel plus a small markup, eliminating the retail margin entirely
• No ramp fee agreements: Many of our fuel contracts include ramp fee waivers when minimum fuel purchases are met, saving additional hundreds of dollars per stop
• International pricing: Our global network extends to international locations where fuel pricing can be highly variable and negotiated rates provide the most significant savings

Fuel Card Programs

Plane Selection participates in major aviation fuel card programs that provide additional savings and operational convenience:

• CAA (Contract Aviation Agreements): Access to discounted fuel at thousands of locations worldwide
• UVair: Universal Aviation's fuel program with competitive pricing across their global network
• World Fuel Services: Contract fuel pricing through one of the world's largest aviation fuel distributors
• Direct FBO accounts: Established credit accounts at frequently used FBOs with negotiated pricing and streamlined billing

Our operations team selects the most cost-effective fuel source for each flight based on route, fuel availability, and pricing at each potential stop. This real-time optimization ensures you consistently pay the lowest available price for fuel, regardless of destination.

Tankering Optimization

When fuel price differentials between departure and destination airports are significant, it may be economical to carry extra fuel (tankering) from the lower-cost location rather than purchasing at the higher-priced destination. Our flight planning team analyzes tankering economics for each flight, considering fuel price differentials, additional fuel burn from carrying extra weight, and range/payload trade-offs. When tankering makes economic sense, we adjust fuel loads accordingly.

Savings Potential

The savings from professional fuel management are substantial and directly measurable. Based on our managed fleet performance:

• Average savings: 20-25% below posted retail fuel prices across all locations
• Light jets (200-300 hours/year): Annual fuel savings of $30,000-$60,000
• Midsize jets (300-400 hours/year): Annual fuel savings of $75,000-$150,000
• Large-cabin jets (400-500 hours/year): Annual fuel savings of $150,000-$300,000
• Ultra-long-range jets (400-600 hours/year): Annual fuel savings of $200,000-$500,000

These savings alone often cover a significant portion of the management fee, making professional management essentially cost-neutral from a fuel perspective alone.

Sustainable Aviation Fuel (SAF)

Plane Selection is committed to supporting the aviation industry's transition to more sustainable operations. We actively facilitate access to Sustainable Aviation Fuel for owners who wish to reduce their carbon footprint:

What Is SAF?

Sustainable Aviation Fuel is a drop-in replacement for conventional Jet-A fuel, produced from sustainable feedstocks such as used cooking oils, agricultural residues, forestry waste, and municipal solid waste. SAF reduces lifecycle carbon emissions by up to 80% compared to conventional jet fuel while meeting the same quality and performance specifications.

SAF Availability

While SAF is not yet available at every airport, supply is growing rapidly. Plane Selection maintains current information on SAF availability and can arrange for SAF uplift at an increasing number of locations worldwide. For airports where physical SAF is not available, we can arrange book-and-claim SAF credits that provide the same environmental benefit through the purchase of certified SAF at another location.

SAF Pricing

SAF currently carries a premium over conventional Jet-A, typically 2-4 times the conventional fuel price depending on feedstock and production process. However, this premium is declining as production scales up, and several jurisdictions offer tax incentives or credits that partially offset the cost difference. We provide transparent SAF pricing and help owners evaluate the cost-benefit of SAF usage.

Carbon Offset Programs

For owners who wish to address their aviation carbon emissions beyond SAF, Plane Selection facilitates participation in verified carbon offset programs:

• Flight-level carbon calculation: We calculate the precise CO2 emissions for each flight based on actual fuel burn data
• Verified offset procurement: We source carbon offsets from projects verified by recognized standards (Gold Standard, VCS/Verra, American Carbon Registry)
• Project selection: Owners can choose from a range of offset project types including reforestation, renewable energy, methane capture, and direct air capture
• Reporting: Annual carbon emissions and offset reports for ESG reporting and corporate sustainability programs
• CORSIA compliance: For applicable operations, we manage compliance with the Carbon Offsetting and Reduction Scheme for International Aviation

Fuel Price Monitoring

Our fuel management team continuously monitors aviation fuel markets to identify trends, anticipate price movements, and advise owners on fuel cost management strategies:

• Daily monitoring of Jet-A spot prices and regional trends
• Monthly fuel cost reports with price analysis and savings tracking
• Alerts for significant price changes at frequently used airports
• Route-specific fuel cost optimization recommendations
• Quarterly fuel market outlook with forward price projections

For owners with predictable travel patterns and high fuel consumption, we can also explore fuel hedging strategies that lock in favorable prices for future consumption, providing budget certainty in volatile fuel markets.