Measuring the Margin Behind the Gallon
Selling a lot of fuel is the most efficient way for an FBO to go broke while feeling successful. It is the great sedative of general aviation. When an owner walks into the office and sees the whiteboard scrawled with a volume that beats last year’s March by 14%, they feel a visceral sense of victory.
They see the trucks moving. They hear the turbine whine. They assume that volume translates directly to value, but in the current market, volume is often a mask for a decaying margin that nobody has the courage-or the data-to unmask.
The whiteboard is a liar because it treats every gallon as an equal participant in the business’s health. It isn’t.
A gallon of retail Jet-A sold to a transient Global 6000 at full list price is a different species of financial animal than a gallon of contract fuel pumped into a based fleet operator’s Citation at a price point negotiated during the Obama administration. One builds a business; the other merely occupies the fuel farm.
The “White Whale” that pays the light bill.
Occupies the farm; offers minimal yield.
The Archaeology of the Fuel Report
Marcy Okafor, who has
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