THE EFFECTS OF FUEL COSTS ON THE AIR CARGO QUANTITY: 2007-2018 CASE OF TURKEY

As in other modes of transport , in the air cargo transportation sector, fuel costs (oil prices) are the main determinant of input costs. In this study, the effects of the change in oil price and the effect of exchange rate on the air cargo transportation sector were examined. As a result of the analysis using the least squares method; showed that the amount of cargo carried in the country was negatively affected by the changes in both oil price and dollar exchange rate, the effect of the increase in dollar exchange rate was higher than that of in oil price and these effects occurred with a delay of six months. Furthermore, the international air cargo transport is mentioned not to be influenced by changes in oil prices and exchange rates. These findings indicate that air cargo transportation companies are trying to protect domestic cargo transportation activities and jet fuel costs by using financial derivatives for a period of six months and that international cargo transportation activity are not protected by financial derivatives