What is the price for Fuel?

Question

What do the major airliners pay for jet fuel?

Answer 1

Millions and millions of dollars a year. A big plane can take on 10,000 gallons at a time at $5- $6 a gallon.

Answer 2

Depends..

Some places only have retail fuel, and this is dependant on location. I.e Little Rock AK, is 5.12 today.

Other locations go by contract fuel rates such as AvFuel, where they the carriers have an account with AvFuel to supply fuel at a wholesale price at their locations, with an additional cost for in to plane rates.

Some larger airlines buy fuel contracts with the wholesalers, buying fuel at the rates set forth in the commidities exchange, and have their own fuel farms at their major airports.

With rising fuel costs, this all speculations, and airlines sometimes will pay more for fuel doing this than what is being offered by contract fuel rates, but it is a gamble, and lately one worth taking.

Answer 3

-Airlines don't pay for fuel like we would when we fill up our cars, they do something called fuel hedging

-Fuel Hedging - "the practice, often employed by airline companies, of making advance purchases of fuel at a fixed price for future delivery to protect against the shock of anticipated rises in price."

-I can say that in 2006 Southwest Airlines (notorious for hedging fuel) spent an astonishing $1.53/gallon, however not all airlines thought ahead and are paying such low fuel prices. Not to mention that Southwest's fuel hedges are running out.

-So you really can't say an amount that the major airlines pay for fuel because they all pay a different amount depending on their particular practices of fuel hedging.

-General Aviation is a different story- at Princeton Airport, NJ Jet-A is $6.04 a gallon.

Answer 4

Go to: www.100ll.com

      

The airliners use Jet-A. And they don't go by gallons, they go by pounds. And if I'm not mistaking, I thing Jet A weighs about 7 pounds per gallon.

Answer 5

Look at the websites below to give you an idea of full retail for fuel, both Jet-A and Avgas. Airlines have generally paid 20-30% less as they purchase in bulk under contracts. With the cost of fuel rising, I don't know if the discount is still the same.

www.100LL.com

www.airnav.com