When Gold Goes Up, the Aviation World Feels It Too
Gold prices keep climbing globally, and while most people think it only affects jewelry stores and investors, the aviation industry secretly says, “Hey… that hurts us too!”
Why? Because aviation is deeply connected to global economics and gold is one of the biggest economic influencers on Earth.
Let’s break down the surprisingly real connection between rising gold prices and the aviation industry… with a bit of Pisbon-style humor.
1. The Global Gold Rally: What’s Happening and Why It Matters
1.1 Why Gold Keeps Going Up Worldwide
Safe Haven Syndrome
Whenever the world panics wars, recession fears, stock meltdowns people buy gold like it’s oxygen.
Central Banks Hoarding Gold
When big countries stack gold like gamers collecting rare loot, prices skyrocket.
Inflation Everywhere
Money loses value, gold stays steady.
And because aviation is highly sensitive to currency fluctuations, this starts a chain reaction.
2. How Rising Gold Prices Affect Aviation: The Hidden Domino Effect
2.1 Stronger Gold = Weaker Currency = More Expensive Aviation Costs
Most countries (including Indonesia) face currency pressure when gold prices rise.
A weaker currency means:
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Importing aircraft parts becomes more expensive
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Dollar-based aviation contracts cost more
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Lease payments for aircraft rise
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Jet fuel prices follow the dollar, not local currency
In short: gold naik → rupiah melemah → biaya penerbangan naik.
Aviation accountants cry in the hangar.
2.2 Investors Shift Away From Aviation Stocks
When gold is too attractive, investors often pull out of cyclical industries, including aviation.
They move money from:
✈️ airlines
✈️ aircraft financing
✈️ aviation manufacturing
…into gold-related assets.
This reduces aviation sector liquidity and slows growth and fleet expansion.
2.3 Higher Gold Prices Signal Uncertainty Airlines Hate Uncertainty
Aviation needs:
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Predictable demand
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Stable economies
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Confident markets
But rising gold often signals:
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Global tension
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Recession fears
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Economic slowdown
And airlines immediately go into “defensive mode”:
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Reduce fleet expansion
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Delay aircraft purchases
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Cut non-essential routes
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Focus on survival rather than innovation
3. Gold vs. Jet Fuel: A Surprising Correlation
3.1 Fuel Prices Tend to Rise When Gold Surges
Gold up → USD up → oil price pressure increases → jet fuel becomes more expensive.
Since fuel is 35%–40% of airline operational cost, airlines feel the pain instantly.
Passengers secretly hope: “Please don’t raise ticket prices…”
Airlines whisper: “We will.”
4. Impact on Aircraft Manufacturers
4.1 Boeing, Airbus, and Suppliers Feel the Heat
Aircraft production depends on:
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Dollar contracts
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Long-term financing
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Commodity stability
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Investor confidence
When gold rises:
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Financing costs increase
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Currency volatility disrupts procurement
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Investors hesitate to fund giant orders
Even small suppliers from avionics to fasteners feel squeezed.
4.2 Precious Metals in Aircraft Components
Fun fact:
Some aircraft electronics do use small amounts of gold due to its conductivity and resistance to corrosion.
So technically… the more gold price rises, the more expensive certain avionics become.
5. Impact on Passengers and Airlines
5.1 Ticket Prices Might Increase
When operational costs climb, airlines eventually pass it to passengers.
So yes gold naik bisa bikin tiket naik juga.
Golden price → golden ticket.
5.2 Reduced Promotions and Discounts
When margins shrink, airlines stop throwing crazy promo fares.
No more “Rp 1 juta PP ke Jepang” era.
5.3 Airlines Strengthen Hedging Strategies
To protect themselves:
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Hedge currency
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Hedge interest rates
Because if they don’t, turbulence hits harder than bad weather.
6. Why Pilots & Crew Should Care Too
6.1 Salary Negotiations Become Tricky
Weaker currency = weaker purchasing power.
Airline revenues might stagnate.
Salary adjustments become tighter.
6.2 Training & Upgrade Paths Slow Down
Transition training and captain upgrades may be postponed during periods of high operational cost.
7. Outlook: Will Gold Keep Affecting Aviation?
7.1 Short Term: Yes, Turbulence Ahead
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Markets still unstable
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Global tensions still active
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Inflation not fully settled
Expect aviation to remain cautious.
7.2 Long Term: Aviation Always Survives
Aviation is resilient.
Gold can rise, markets can panic but people will still fly, airlines will still adapt, and manufacturers will still innovate.
Because aviation is built to survive storms literally.
The Yellow Metal Is More Powerful Than We Think
Gold rising doesn’t just affect jewelry stores or investors.
It creates economic waves that hit the aviation industry from runway to cockpit:
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Currency pressure
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Fuel price volatility
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Investment shifts
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Higher operational costs
So next time you see gold price hitting a new high, remember…
Somewhere in an airline office, a finance manager is calculating operational costs while whispering:
“Please… stop going up.”
