On June 21, 2018

Airline Fuel Efficiency: How to get started?

The cost of fuel is the arch nemesis of the airline industry, and since summer 2017, crude oil prices have gone up.


The spike in fuel prices, generally airlines' biggest cost, is quickly eroding carriers' profits and jeopardizing their development.

Using this limited resource in a smarter way has become a main priority for all aircraft operators around the globe.


But even if the purpose seems clear, some questions may arise while considering implementing a fuel efficiency program. How to get started?


That's what this article is about: we hope it will give you some answers. And if you have any further question, please contact our 40+ fuel experts, they will be happy to help!



Why fuel efficiency matters?


As previously noted, fuel prices are increasing over the last years and you probably worry about the impact on your airline costs. Indeed, fuel price trends are a real issue for airlines since fuel generally represents 30% of their costs. 


Good news is fuel cost does not just depend on fuel price, but also on fuel efficiency. 


Did you know that you can expect up to 5% of fuel savings by optimizing your operations? 


You should appropriately adjust your operations or else your company is at risk of losing competitive advantage to those who do.


Also, you probably heard of CORSIAthe Carbon Offsetting and Reduction Scheme for International Aviation.

To reach CORSIA's goal, the aviation industry needs to improve fuel efficiency by 1.5% annually until 2020, and then stabilize the CO2 emission from 2020 onwards. 



How much savings can my airline achieve?


Fuel efficiency consists in multiplying small quantities with big numbers.


Get familiar with the math of airline fuel efficiency: it's a really simple formula! A savings calculator spreadsheet is also available.



Do I need specific tools for my fuel efficiency program?


You probably know this famous quote from Lord Kelvin: “You cannot improve what you cannot measure.”

Without a clear view on the fuel savings achievements, it might be difficult to keep the fuel team engaged.


Innovative technology such as Big Data analytics are an opportunity to have a significant and disruptive impact on fuel efficiency programs over the next five years. Discover how to use big data analytics to improve fuel efficiency.


We also know from airlines experiences (in the section above) that empowering pilots with a dedicated tool means better results. 



How to set up my fuel team?


Some questions may arise while considering building your fuel team: Which profiles should compose the team? Which are its responsibilities and how should it interact with other departments? What tools should the team be provided with?


Here are some insights from our fuel experts:



Airlines' fuel efficiency experiences


How did other airlines implement a fuel efficiency program? What were their pain points and challenges and how did they solve them?


These case studies, published by Aircraft IT, will give you some insights:


Fuel tips & tricks

Optimizing ground operations: tips & tricks


Best practices: tips & tricks



More fuel tips & tricks coming soon... Stay tuned!

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