How can airport management professionals adapt to fluctuating fuel prices?

2 Negotiate fuel contracts and fees

Another way to cope with fluctuating fuel prices is to negotiate flexible and favorable contracts and fees with the fuel suppliers and service providers. Airport managers can seek long-term agreements that offer fixed or capped prices, discounts, rebates, or incentives for volume or loyalty. Alternatively, they can opt for short-term contracts that allow them to switch suppliers or renegotiate prices when the market changes. Airport managers can also review and revise their fuel fees and charges for the airlines and passengers, such as the fuel surcharge, the fuel tax, and the fuel facility charge, to reflect the actual costs and revenues of the fuel operation.

3 Implement fuel conservation measures

A third strategy to adapt to fluctuating fuel prices is to implement fuel conservation measures that reduce the fuel consumption and emissions of the airport and the aircraft. Airport managers can adopt various initiatives, such as optimizing the taxiing routes and times, minimizing the use of auxiliary power units, installing solar panels or wind turbines, upgrading the lighting and heating systems, and encouraging the use of electric or hybrid vehicles. These measures can not only save fuel and money, but also improve the environmental performance and reputation of the airport.

4 Diversify revenue streams

A fourth strategy to adapt to fluctuating fuel prices is to diversify the revenue streams of the airport and reduce the dependence on the aeronautical revenues, which are directly affected by the fuel prices and demand. Airport managers can explore and develop alternative sources of income, such as retail, food and beverage, parking, advertising, real estate, cargo, and other non-aeronautical services. These revenues can provide a more stable and resilient cash flow for the airport and help offset the losses or fluctuations caused by the fuel prices.

5 Collaborate with stakeholders

A fifth strategy to adapt to fluctuating fuel prices is to collaborate with the stakeholders involved in the airport and the aviation industry, such as the airlines, the regulators, the suppliers, the customers, and the employees. Airport managers can communicate and coordinate with these stakeholders to share information, expectations, risks, and opportunities related to the fuel situation. They can also seek feedback, input, and support from these stakeholders to develop and implement solutions that benefit all parties. By fostering a culture of collaboration and trust, airport managers can enhance the performance and sustainability of the airport and the aviation sector.

6 Invest in innovation and technology

A sixth strategy to adapt to fluctuating fuel prices is to invest in innovation and technology that can improve the efficiency, productivity, and competitiveness of the airport and the aviation industry. Airport managers can research and adopt new technologies, such as artificial intelligence, big data, blockchain, and biometrics, that can optimize the airport operations, processes, and services. They can also support and promote the innovation and development of alternative fuels, such as biofuels, hydrogen, and electricity, that can reduce the reliance on fossil fuels and lower the environmental impact of aviation.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?