Airport Fuel Flowage Fees: Legal Authority, Limits, and Disputes

Airport fuel flowage fees are per-gallon charges collected every time aviation gasoline or jet fuel is pumped into an aircraft on airport property. They generally run from a few cents to roughly $0.25 or more per gallon, depending on the airport’s size, costs, and local market. The money funds runway maintenance, lighting, and other airfield infrastructure, which is why federal law both permits airports to charge these fees and tightly restricts how the revenue can be spent.

How the Fee Is Collected

Flowage fees use a flat cents-per-gallon structure, not a percentage of the sale price. That keeps revenue predictable no matter what jet fuel costs on any given day, and it makes accounting straightforward on both sides.

Collection runs through three parties. The Fixed Base Operator (FBO) or other fuel supplier pumps fuel into the aircraft and collects the flowage fee at the point of sale, bundled into the total fuel price. The supplier then remits the fee to the airport, usually monthly. Lease agreements between the airport and the fuel provider typically require detailed gallonage reports showing how much fuel was delivered and dispensed, and most leases include an audit clause letting the airport verify volumes against payments. Airports that skip verification leave themselves open to underreporting.

The Legal Authority to Charge

An airport’s power to charge these fees rests on two things: its rights as the landowner operating the facility, and the federal grant obligations it accepted when it took Airport Improvement Program (AIP) money.

Accepting federal funding binds the airport sponsor to a set of grant assurances.1Federal Aviation Administration. Grant Assurances Two matter here. Grant Assurance 22 (Economic Nondiscrimination) requires the airport to remain open on reasonable terms without unjust discrimination. Grant Assurance 24 (Fee and Rental Structure) directs the sponsor to maintain a fee structure that makes the facility “as self-sustaining as possible under the circumstances,” considering traffic volume and the cost of collecting revenue.2Federal Aviation Administration. Airport Improvement Program Grant Assurances for Airport Sponsors Together, they give the airport both authority and an obligation to charge fees like flowage.

User Fee, Not a Tax

Federal law draws a hard line between a permissible user fee and a prohibited tax on air commerce. Under 49 U.S.C. § 40116, states and their political subdivisions cannot tax individuals traveling in air commerce, the sale of air transportation, or gross receipts from air commerce. An exception permits “reasonable rental charges, landing fees, and other service charges from aircraft operators for using airport facilities.”3Office of the Law Revision Counsel. 49 USC 40116 – State Taxation Fuel flowage fees fit inside that exception because they charge for use of airport infrastructure. A municipality that tried to label a flowage charge as a general revenue tax would run straight into the prohibition.

Limits on How Much an Airport Can Charge

The FAA requires that all aeronautical fees be fair, reasonable, and free from unjust discrimination.4Federal Register. Policy Regarding Airport Rates and Charges An airport cannot charge one FBO a different rate than another for the same activity, and it cannot set fees so high they effectively block airfield access. The Airport Compliance Manual reinforces this by requiring a rational connection between the amount charged and the airport’s actual costs of providing the facilities being used.5Federal Aviation Administration. FAA Order 5190.6C – Airport Compliance Manual Chapter 18

Reasonableness does not mean the airport must break even on every line. Airports may generate surpluses to reinvest in future capital projects. The question is whether the fee structure as a whole is justifiable given documented operating and capital expenses. An airport charging dramatically more per gallon than comparable facilities in similar markets is the kind of outlier that invites a formal challenge.

Self-Fueling and Bringing Your Own Fuel

One of the most misunderstood aspects of flowage fees is how they apply when an aircraft owner brings their own fuel. Grant Assurance 22(f) protects the right of aircraft owners and operators to service their own aircraft with their own employees, and that expressly includes fueling.6Federal Aviation Administration. Airport Compliance Manual Chapter 11 – Self-Service A federally obligated airport cannot force you to buy fuel from the on-field FBO.

The right has limits. The airport can require you to pay the same per-gallon flowage fee it charges fuel providers selling to the public. It can also impose reasonable safety and equipment standards, including local fire codes and environmental rules, and it can deny self-fueling if you cannot meet those standards. What it cannot do is set requirements so burdensome they channel you back to the FBO, which would cross into granting an exclusive right and is prohibited.7Federal Aviation Administration. Airport Compliance Manual Chapter 8 – Exclusive Rights

Self-fueling must be done by the aircraft owner or the owner’s employees. You generally cannot hire a third-party contractor and still call it self-service. If you sublease space from an FBO, you may need both the FBO’s and the airport’s approval to self-fuel there, though the airport should offer an alternative location on the field if one is available.6Federal Aviation Administration. Airport Compliance Manual Chapter 11 – Self-Service

Where the Money Has to Go

Every dollar collected through flowage fees must be spent on the airport. Under 49 U.S.C. § 47133, revenue generated by a federally assisted airport cannot be used for any purpose other than the capital or operating costs of the airport itself, the local airport system, or other local facilities directly and substantially related to air transportation.8Office of the Law Revision Counsel. 49 USC 47133 – Restriction on Use of Revenues The same restriction applies to local aviation fuel taxes enacted after December 30, 1987.9Office of the Law Revision Counsel. 49 USC 47107 – Project Grant Application Approval Conditioned On Assurances About Airport Operations

A city or county cannot move flowage revenue into its general fund for roads, schools, or anything else unrelated to aviation. The FAA calls this “revenue diversion” and monitors airport finances through annual reporting to catch it. State aviation fuel taxes can still support a state aviation program, and airport revenue can be used off-airport for noise mitigation, but those are narrow exceptions.8Office of the Law Revision Counsel. 49 USC 47133 – Restriction on Use of Revenues

Penalties for Diversion

Under the FAA Reauthorization Act of 2024, the civil penalty for airport revenue diversion is double the amount illegally diverted, plus interest.10Federal Aviation Administration. FAA Order 5190.6C – Airport Compliance Manual Chapter 15 An airport caught diverting revenue also jeopardizes future AIP discretionary grants. The FAA is required to weigh non-airport use of revenue against awarding discretionary funding, and losing access to those dollars can cripple major capital projects for years.

Challenging a Fee You Think Is Unfair

If you believe an airport’s flowage fee is unreasonable or discriminatory, the formal avenue is a Part 16 complaint with the FAA. Anyone “directly and substantially affected” by the alleged noncompliance can file, including businesses paying fees or rents at the airport.11Federal Aviation Administration. 14 CFR Part 16 – Rules and Administrative Decisions

Before filing, you must make a genuine effort to resolve the dispute informally with the airport. A complaint that skips this step will be dismissed. If informal efforts fail, you file with a concise statement of facts, the specific federal provisions you believe the airport is violating, and whatever documentation you can gather through reasonable diligence. The FAA Director issues a determination, and either side can appeal to the Associate Administrator; a party unhappy with the final agency decision can seek judicial review in a U.S. Court of Appeals.12eCFR. Rules of Practice for Federally-Assisted Airport Enforcement Proceedings The statutory timeline sounds tidy. In practice, cases frequently stretch well beyond the minimums, especially when hearings are involved.