Fuel Tankering Economics
Analyze the cost-effectiveness of carrying extra fuel from cheaper locations.
Tankering Considerations
- Typical extra fuel burn: 3-4% of tankered fuel
- Higher for older, less efficient aircraft
- Check fuel tank capacity limits
- Verify MTOW/MLW restrictions
- Consider environmental impact of extra fuel burn
- Account for currency fluctuations
Understanding Fuel Tankering
What is Fuel Tankering?
Fuel tankering involves carrying more fuel than needed for a flight to avoid purchasing fuel at more expensive locations. This is common in airline operations where fuel prices vary significantly between airports.
The Trade-off
Carrying extra fuel increases aircraft weight, which increases fuel consumption. The question is whether the fuel price savings exceed the cost of the additional fuel burned. Typically, 3-4% of the extra fuel carried is burned during the flight.
Tankering Formula
Net Savings = (Price Diff x Net Tankered) - (Penalty Fuel x Departure Price)
Where Net Tankered = Tankered Fuel - Penalty Fuel Burned
Environmental Considerations
While tankering can save money, it increases overall fuel consumption and CO2 emissions. Many airlines now balance economic considerations with environmental responsibility, limiting tankering to situations with significant savings.