FBO Industry Forecast Remains Mixed for 2014
The FBO industry should expect a flat market this year with spotty increases in fuel sales, according to the results of an annual FBO industry survey conducted by John Enticknap and Ron Jackson, principals of the Aviation Business Strategies Group (ABSG). Their findings, released today at the NBAA Schedulers and Dispatchers Conference in New Orleans, predict that approximately half the marketplace will see a small increase in fuel volume.
“Although there is increased optimism for 2014, nearly half of the FBOs surveyed did not see an increase in business during 2013,” said Enticknap. “Last year we said any FBO attaining a 6-percent increase in fuel sales would [be] a star,” he noted, adding that more than 20 percent of those surveyed reached this target. “For 2014, we’re raising this high-water mark to 8 percent.”
Nearly half of the companies polled in this most recent survey indicated they believe the U.S economy is still not headed in the right direction. “Overall, there is a sense of status quo for 2014, with a majority of those surveyed predicting at least a break-even marketplace,” said Jackson. “On the positive side, more than 40 percent predict an increase in fuel sales volume, with 20 percent anticipating an increase of more than 5 percent.”