Walk up to almost any FBO counter and you will see two kinds of fuel price. One is the posted retail price on the board. The other is the price that crews with a contract pay, and it is often lower. The difference comes from contract fuel programs, which have become a routine part of how business aviation buys fuel.
If you fly a turbine aircraft and still pay retail everywhere, you may be leaving money on the ramp. This guide explains how contract fuel programs work, what terms like “CAA Preferred FBO” mean, and how to get the most from a program on your next trip.
What Are Contract Fuel Programs?
Contract fuel programs are fuel buying arrangements that give operators a price below the posted retail rate. AOPA Pilot describes contract fuel as a pricing and negotiating program that provides lower-than-retail fuel, especially away from home base. Some programs are run by fuel suppliers. Others are independent buying groups or card companies that negotiate on behalf of their members.
The basic idea is simple. A program negotiates a discount with a network of FBOs. In turn, the operator buys fuel through the program instead of paying the posted price. The FBO still fuels the airplane, but the pricing, billing or both run through the program.
Programs fall into a few broad groups:
- Fuel supplier programs. Brands such as Avfuel, Phillips 66 and Titan offer contract fuel through the FBOs they supply.
- Independent fuel resellers. Companies such as UVair, AEG Fuels and Everest Fuel arrange fuel at many FBOs, regardless of brand.
- Membership buying groups. The Corporate Aircraft Association, or CAA, negotiates discounts for its members at selected FBOs.
- FBO networks. Groups of independent FBOs, such as the Paragon Aviation Group, offer their own pricing and loyalty programs.
How a Fuel Release Works
Most contract fuel programs work through a fuel release. A release is an authorization for the program to arrange fuel on your behalf at a specific FBO. Usually, you request it before the trip, through the program’s website, app or trip planning service.
The program then notifies the FBO, which knows to expect you and what price applies. When you land, the line crew fuels the airplane, and you settle the bill through the program or your fuel card. As AOPA points out, a release has a useful side effect. It confirms that the FBO actually has fuel for you before you commit to the stop.
Timing matters. Request the release early, especially for after-hours arrivals. Otherwise, the FBO may not see it in time, and you could end up paying retail.
What “CAA Preferred FBO” Means
The term “CAA Preferred FBO” appears on many listings, so it is worth understanding. The Corporate Aircraft Association is an independent contract fuel program for Part 91 operators of turbine aircraft. According to AIN, its fuel program began in 1997 and charges members a yearly fee per aircraft.
CAA works differently from most programs. At each airport, FBOs bid on the discount they will offer. CAA members then vote on which FBO becomes the preferred location, generally for a three-year term. As a result, there is usually only one CAA Preferred FBO at a given airport. An FBO can also lose the designation if a competitor makes a better offer at the next vote.
For a member, the label means the FBO has committed to CAA pricing at that airport. For everyone else, it is simply a sign that the FBO competes for corporate business. Either way, confirm the current status before you plan around it. Designations change, and listings are not always updated right away.
Why Contract Fuel Programs Matter
The obvious benefit is price. AOPA reports that discounts can be as small as a nickel per gallon, with 10 cents common, and some programs offer more. On a single 300-gallon uplift, even a modest discount adds up. Over a year of flying, the savings can be significant.
There are other benefits, too. For example, a program centralizes billing, which simplifies accounting for flight departments. Many programs also bundle trip planning tools, fuel price comparison and international support. Some FBOs add their own perks for program customers, such as waived fees or overnight parking.
However, contract fuel is not automatically the cheapest option. Discounts move with the market, so the gap between contract and retail can shrink. Card fees matter as well. If you present a card that does not match the FBO’s brand, the FBO may pay a processing fee. In that case, the discount can disappear.
How to Get the Most From a Program
A little planning helps any operator get full value from contract fuel programs. Before your next trip, run through this list.
- Compare the total cost. Look at the contract price, the posted retail price and any fees together. Ask whether landing or facility fees are waived with a minimum uplift.
- Match the card to the FBO. Use the fuel card that matches the FBO’s brand where possible, or confirm how the FBO handles your program.
- Request releases early. Build the release into your trip planning, not your arrival checklist.
- Check more than one program. Many operators carry two or three programs and compare prices route by route. Tools such as fuel price aggregators help with this.
- Ask at the counter. Prices change. A quick question about current pricing is part of good planning.
Contract Fuel at KEXX
At Davidson County Executive Airport (KEXX) in Lexington, North Carolina, Fly High Lexington sells Titan Jet A and 100LL. The FBO accepts contract fuel and the Titan card. It also offers no landing fee with a minimum fuel purchase and no facility fees with fuel. To compare the posted retail price, check the Fly High Lexington AirNav listing, where the FBO guarantees its posted fuel prices.
If you plan to use a program, call the FBO at 336-956-7774 and confirm which programs apply. That way, your release and your price are settled before you land. For more about the airport, see our page on KEXX as a North Carolina fuel stop.
Where Contract Fuel Fits Your Route
Contract fuel programs do the most good on routes you fly often. For example, crews flying between the Northeast and Florida stop at the same handful of airports every season. In that case, a program and a well-chosen stop work together. Our guide to the best fuel stop between New York and Florida covers how to pick that stop. If you fly a larger jet, also read what the KEXX runway rating means for jet operators before you plan.
KEXX also serves crews with business across the Piedmont Triad. Our pages on private aviation near Greensboro, corporate aviation near High Point, private aviation near Winston-Salem and private aviation near Thomasville cover drive times and ground transportation.
The Bottom Line
Contract fuel programs are one of the simplest ways to lower operating costs without changing how you fly. Learn how your programs work, request releases early and compare the full cost at every stop. For a deeper look at how operators use contract fuel, AOPA’s article Don’t pay retail is a good place to start. Then check prices before your next trip, and let the savings add up one uplift at a time.