Prasadja Ricardianto Primary Author Aditya Wardhana Primary Author Lira Agusinta Primary Author Mustika Sari Primary Author Ridho Bramulya Ikhsan Primary Author

Abstract. The goal of this research is to discuss what causes the price volatility of aviation fuel (aviation turbine fuel) and how airlines take advantage of fluctuating the exchange rate and the increase of aviation fuel prices while maintaining their profit. The aviation industry characterized by high competition because of the low entry barrier and market liberalization as cause globalization. The national aviation industry faces problems in managing operational costs, very high aviation fuel cost, which affects operational costs, difficulty in providing aircraft spare parts. We know that most of the components of operational aircraft costs are in US Dollars, but the income is in Rupiah, the airlines with domestic scheduled flights. The trade war between the USA and China and the European Union, which is generated by the problem of President Trump’s Administration, takes part in shaking the world economy. The research method uses a descriptive qualitative approach through understanding judge several airline leaders, International Air Transport Association, International Air Transport Association, National Committee on Transportation Safety, and some other sources. The aviation industry must be able to survive in such a condition by increasing revenue from passengers and increasing the aircraft utilization, pushing down the operational costs such as for ground handling, fuel tanker, hotel for the crew.