Yes, 'damage'. I tend to confuse this, since for me 'damage' is the end result of an attack, not a weapon stat. Looks like I wanted to change it in the pedia, but never got to actually do it, instead I was selectively blind
So: all correct (including fuel), although with incendiary or smoke, the only meaning of the 'damage' is that it sets the blast radius (in Piratez, the convention is: incendiary is left alone, thus radius = damage/20; with Smoke - radius = damage/10-1, so it's consistent with vanilla's Smoke Grenade (Power 60, Radius 5).
And yeah, WP incendiaries calculate their damage like explosives (50-150%), so the damage rating is meaningful. This also makes them quite useful because they still ignore armor (but not Fire Resistance).
Also pls don't ask me how far you can fly on 1 unit of fuel, I honestly don't know, other than it depends inverse-proportionally on Max Speed of a craft