You may be paying less at the pump these days, but jet fuel costs remain high heading into the winter months. With global events making fuel more expensive and less readily available across the private aviation industry, we’ve listened to our customers’ requests for more predictability in fuel pricing. Now, Magellan’s Jet Card Owners have a new tool to guard against rising jet fuel costs and manage the volatile energy market: we’ve introduced the ability to pre-purchase fuel on Jet Cards!
Pre-Purchasing Jet Fuel With Magellan
How Does It Work?
New Jet Card Owners (and existing Jet Card Owners who renew or add hours to their cards) will now have the option to pre-purchase fuel at Magellan’s published rates for the full length of their Jet Card agreement. With your fuel paid for ahead of time, you’ll protect your investment against surprise energy costs down the line—and from now through November 30, 2022, customers who pre-purchase fuel on a Magellan Jet Card will enjoy a 15 percent discount.
The price of the pre-purchased fuel on your Jet Card will be determined using Magellan’s hourly, jet category-based fuel rates. We track fuel pricing at FBOs across the country and adjust our rates accordingly, never using fuel as a source of profit—we simply pass the cost through to the customer, meaning our fuel rates are among the most competitive on the market.
With the future of the energy market uncertain, pre-purchasing fuel allows Magellan Jet Card Owners to insulate themselves should fuel prices continue to rise. Additionally, should jet fuel prices fall below a Jet Card Owner’s discounted rate, we’ll credit the difference back to them in the form of flight credits.
OIL AND GAS PRICES HAVE GONE DOWN—WHY HAVEN’T JET FUEL PRICES?
You may be wondering why the price of jet fuel has remained high while the prices of other oil products have stabilized or even decreased in recent months, so we wanted to provide some explanation. Jet fuel, like heating oil and diesel fuel, is a distillate fuel that requires an additional refining process. According to a market analysis by Fisher Investments, distillate fuel inventories were “about 20% below their five-year seasonal average, amounting to roughly 25 days of reserves” at the start of November. Distillate supplies are low right now for several reasons, including the ban on petroleum products imported from Russia, the decreased capacity and/or repurposing of U.S.-based refineries, and seasonal demand for heating oil. That’s part of why jet fuel continued to rise in price in November, with Aviation Week reporting a national average of $7.64 per gallon. Fuel prices at aviation’s busiest locations, including commercial airports, were much higher.
One great advantage for Magellan guests is that our Fuel Adjustment is representative of the places we fly, rather than just the national average—which would include the high fuel prices at commercial airports. In large cities where major international airports exist, Magellan almost always utilizes an executive airport just outside the city limits. Our customers know they’re paying a rate reflective of the places they’re actually flying, not influenced by the fuel prices at commercial hubs.
How Can I Pre-Purchase Fuel On A Magellan Jet Card?
To learn more about a Magellan Jet Card with pre-purchased fuel, click here to explore our full suite of Jet Card offerings—or call 877-550-5387 today to speak with a Private Aviation Consultant today!