Gazpromneft-Aero retail sales of jet fuel increase 11% in 2018

posted on 14th March 2019 by Justin Burns
Gazpromneft-Aero retail sales of jet fuel increase 11% in 2018

Russian aviation fuel supplier Gazpromneft-Aero has reported it achieved more than 2.7 million tonnes of retail, or ‘wing-tip’ sales in 2018 – 11 per cent higher than in 2017 – with growth especially driven by the Asia-Pacific market.

The total volume of jet fuel sales increased by nine per cent on the year to exceed 3.6 million tonnes. In 2018, Gazpromneft-Aero’s international sales network expanded to 260 airports in 66 countries.

The company started offering refuelling services in Malaysia and Gambia, and significantly expanded its presence in China and Tunisia.

Due to the positive dynamics of jet fuel sales globally but primarily in the Asia-Pacific region, the UAE, Serbia and Egypt, Gazpromneft-Aero saw its international refuelling volumes increase by 15 per cent to 246,000 tonnes for the year.

Last year, the company saw strong growth in Asia-Pacific with Thailand up four per cent to 98,142 tonnes, China up 70 per cent to 21,632 tonnes, Vietnam up 6243 per cent to 6,343 tonnes and Japan 175 per cent to 6,169 tonnes.

Other strong growth markets were the UAE at 196 per cent to 25,455 tonnes, Egypt 136 per cent to 14,181 tonnes and Italy 450 per cent to 6,690 tonnes.

Gazpromneft-Aero was the first Russian aviation fuel operator to launch a digital business development strategy. In 2018, the company successfully tested smart contracts based on blockchain technologies and com pleted a trial run of a refuelling robot that loads petroleum products into fuel tanker trucks.

Chief executive officer, Vladimir Yegorov said: “In 2018 we extended our business development strategy to 2030. Our goal is to become one of the ten largest international aviation fuel operators by doubling the volume of our retail sales and increasing five-fold our international ‘wing-tip’ sales.

“Such challenging targets will be achieved by the active growth of our international network and the introduction of the best technological and digital practices into operational processes.”

“The strong demand for aviation fuel in Russia will also be a key factor.”

Gazpromneft-Aero said the Russian passenger traffic market is “highly volatile” but is growing twice as fast as the global market  and in 2018, 116 million passengers flew, a rise of 11 per cent on 2017 with the international segment up 12 per cent to 47.4 million and domestic up 9.9 per cent to 68.8 million.

In the second half of 2018, the aviation fuel supplier won refuelling contracts at Moscow’s three airports with Thai Airways (one year), Sichuan Airlines (two years). Alitalia (one year), British Airways (one year), Air Serbia (one year) and Uzbekistan Airways (14 months).

Gazpromneft-Aero also picked up contracts internationally with Aeroflot (one year) in Belgrade (Serbia) and flydubai (one year) in Bishkek.