Market Volatility
Market volatility in aviation refers to the unpredictable and rapid changes in the demand for air travel, which can be caused by various factors such as economic conditions, geopolitical events, natural disasters, and pandemics. Market volatility can have a significant impact on airlines' profitability, as it affects their revenue and cost structure. Airlines need to be able to quickly adapt to market volatility by adjusting their capacity, pricing strategies, and route networks. Effective risk management and contingency planning are essential to mitigate the negative impact of market volatility on airlines' financial performance.
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