Fuel Prices?
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Fuel Prices?
With the price of a barrel of oil going toward $55 a barrell, and freight companies and airlines all charging "fuel surcharges", does anyone out there know exactly how much the airlines in Canada pay per litre for their jet fuel? How much more do small jets/turboprops pay at FBO's and how much of the price is tax?
The answer might shed some light on how much of these surcharges is a survival strategy, and how much (if any) is profiteering. Students of the airline industry in Canada please tell !
Also, how much does this price vary by region, and by quantity?
The answer might shed some light on how much of these surcharges is a survival strategy, and how much (if any) is profiteering. Students of the airline industry in Canada please tell !
Also, how much does this price vary by region, and by quantity?
Join Date: Mar 2004
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With the quantity of fuel airlines burn in a year, they usualy buy their fuel and pay for it sometimes years in advance. A friend of mine is a regional chief pilot for SouthWest airlines in Baltimore and he was telling me the only reason they posted a profit last quarter was the fact they had paid for their fuel back in 2003 at 2003 prices. He also mentionned that 85% of their fuel burn for 2005 was purchased and paid in the first half of 2004, so looks like they will be able to keep their ticket prices somewhat below their competition.
As for AC, the way they manage their investor's $$ wouldn't surprise me if they were on a pay as you burn plan. My 2 cents.
Corporate usually pay the posted price at the FBO. If you go to a specific FBO on a regular basis, you can have "contract fuel" which is basically a yearly agreement of fuel purchased and is directly billed to the operator bypassing all credit cards fees, airmiles and frequent flyers points thus allowing the vendor a little more room to give you a little break on the price.
hope this helps,
Dan
As for AC, the way they manage their investor's $$ wouldn't surprise me if they were on a pay as you burn plan. My 2 cents.
Corporate usually pay the posted price at the FBO. If you go to a specific FBO on a regular basis, you can have "contract fuel" which is basically a yearly agreement of fuel purchased and is directly billed to the operator bypassing all credit cards fees, airmiles and frequent flyers points thus allowing the vendor a little more room to give you a little break on the price.
hope this helps,
Dan
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Not totally exact values due to disclosure rules, but you should get the general idea!
[list=1][*]CYFB = US$2.10 per USG[*]CYJT = US$1.20 per USG[*]CYQX= US$1.40 per USG[*]CYUL = US$1.40 per USG[*]CYYZ = US$1.50 per USG[/list=1]
Mutt.
[list=1][*]CYFB = US$2.10 per USG[*]CYJT = US$1.20 per USG[*]CYQX= US$1.40 per USG[*]CYUL = US$1.40 per USG[*]CYYZ = US$1.50 per USG[/list=1]
Mutt.
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Thanks for replies, folks. So an airliner leaving Canada out of most places would be paying approx.
$1.20 US/USG = $1.50 Cdn/USG = 38c/Litre (cheapest) to about twice that amount.
That's about half what we pay for diesel for our cars !
That might also explain why most airline mechanics seem to drive Diesel Golf/rabbit cars !! (all that unuseable "sumped " fuel shouldn't go to waste. "just recycling, officer !"
It also looks like the FBO's take the price and double it for light jets/turbo's.
Would that be about right?
Cheers, Rosbif.
$1.20 US/USG = $1.50 Cdn/USG = 38c/Litre (cheapest) to about twice that amount.
That's about half what we pay for diesel for our cars !
That might also explain why most airline mechanics seem to drive Diesel Golf/rabbit cars !! (all that unuseable "sumped " fuel shouldn't go to waste. "just recycling, officer !"
It also looks like the FBO's take the price and double it for light jets/turbo's.
Would that be about right?
Cheers, Rosbif.
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At FBO's in Canada we are paying anywhere in the last 6 months between 0.53 and 0.98 cents (Canadian) per litre of Jet A. The bulk of our fuel has been at the 0.76 level. That's all taxes and in the a/c.
