{"id":322,"date":"2022-03-28T17:27:43","date_gmt":"2022-03-28T17:27:43","guid":{"rendered":"https:\/\/www.innoviusresearch.com\/blog\/?p=322"},"modified":"2022-03-31T07:27:59","modified_gmt":"2022-03-31T07:27:59","slug":"impact-on-aviation-market-ukraine-russia-conflict","status":"publish","type":"post","link":"https:\/\/www.innoviusresearch.com\/blog\/news\/impact-on-aviation-market-ukraine-russia-conflict\/","title":{"rendered":"Impact on Aviation Market &#8211; Ukraine-Russia Conflict"},"content":{"rendered":"\n<h5 class=\"wp-block-heading\" style=\"font-style:normal;font-weight:500\"><strong><em>Introduction<\/em><\/strong><\/h5>\n\n\n\n<p>Just when the aviation market was regaining its footing with the relaxation of COVID-19 limitations, air travel is expected to be hampered once again due to the <strong>Russia-Ukraine crisis<\/strong>. High oil prices, fewer customers owing to the pandemic, and the possibility of conflict or war are a triple whammy from which airlines will struggle to recover fast.<\/p>\n\n\n\n<p><strong>According to <em>Rob Morris, Chief Consultant at UK-based Ascend by Cirium<\/em>,<\/strong> Russia\u2019s invasion has significant potential to derail the fragile airline recovery in Europe.<\/p>\n\n\n\n<script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6580330613220222\" crossorigin=\"anonymous\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6580330613220222\" data-ad-slot=\"2367613624\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n\n\n\n<h5 class=\"wp-block-heading\"><strong><em>Present Situation and Impact<\/em><\/strong><\/h5>\n\n\n\n<p><strong>Increased flight fares <\/strong>&#8211; Recently, data from Google Flights showed that the prices of flights out of Russia have been <strong>soaring<\/strong> following the sanctions. Hence, as a result, Russians looking to travel to Europe are faced with often unaffordable prices for their tickets. This will also harm several touristic destinations that are favored by Russian tourists.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-style-twentytwentyone-border\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"516\" src=\"https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/Ukr-Rus-Impact-on-Aviation_03232022-1-1024x516.jpg\" alt=\"Aviation market | Innovius Research\" class=\"wp-image-345\" srcset=\"https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/Ukr-Rus-Impact-on-Aviation_03232022-1-1024x516.jpg 1024w, https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/Ukr-Rus-Impact-on-Aviation_03232022-1-300x151.jpg 300w, https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/Ukr-Rus-Impact-on-Aviation_03232022-1-768x387.jpg 768w, https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/Ukr-Rus-Impact-on-Aviation_03232022-1.jpg 1165w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption><em><strong>Cost of one-way economy flight St Petersburg Pulkovo airport, booked for 1 April (\u00a3)<\/strong><\/em><\/figcaption><\/figure>\n\n\n\n<p><strong>Titanium shortage <\/strong>&#8211; Titanium is a vital metal in aircraft manufacturing. As Ukraine and Russia are among the world&#8217;s major producers of titanium, a disruption in supply may hamper aircraft and engine makers&#8217; manufacturing lines. A titanium scarcity might result from manufacturers refusing to buy it to put pressure on the Russians, or it might be the Russians cutting off supplies in retaliation for the restrictions imposed on them. In either case, eliminating some or all of the Russian titanium would pose a significant challenge to airline manufacturers and, ultimately, airlines.<\/p>\n\n\n\n<p><strong>Airspace closure \u2013 <\/strong>According to IBA Consultants, <strong>Russia<\/strong> accounted for <strong>6%<\/strong> of <strong>airline capacity <\/strong>in 2021. Russia has now blocked its airspace to <strong>36 nations<\/strong>, including all <strong>27 EU members<\/strong>, resulting in a <strong>42% decrease in flights <\/strong>to\/from Europe traveling across Russian airspace. Ukraine&#8217;s airspace is likewise devoid of aircraft. Even the European Union has declared that all Russian-owned, Russian-registered, or Russian-controlled aircraft would be barred from using its airspace. The United Kingdom followed suit and barred Russian planes from its airspace, prompting Russia to restrict all UK aircraft from its airspace. The US Department of Transportation and its Federal Aviation Administration issued directives on March 2, 2022, prohibiting Russian aircraft and airlines from entering and utilizing all domestic US airspace.<\/p>\n\n\n\n<p><strong>Russia<\/strong> issued a <strong>NOTAM<\/strong> (notice to air missions) prohibiting civil flights from flying over Ukraine&#8217;s northeastern border. This encompasses a stretch of an area where Russian forces have concentrated. Simultaneously, Ukraine restricted its airspace to passenger flights. Civilian air traffic tracking sites now reveal that airlines are avoiding crisis zones by a considerable margin<\/p>\n\n\n\n<p><strong>Disruption to Commercial Air Travel on a Massive Scale <\/strong>\u2013 Airlines will now incur more fuel, maintenance, and logistical expenses while attempting to recover from the pandemic&#8217;s consequences. According to ICF International Inc., diversions around <strong>Ukraine<\/strong> will cost airlines an extra <strong>$1.5 million <\/strong>every week. The loss of overflight fee revenue will be terrible for Ukraine.<\/p>\n\n\n\n<script async=\"\" src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6580330613220222\" crossorigin=\"anonymous\"><\/script>\n<ins class=\"adsbygoogle\" style=\"display:block; text-align:center;\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\" data-ad-client=\"ca-pub-6580330613220222\" data-ad-slot=\"2367613624\"><\/ins>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>\n\n\n\n<p><strong>Cargo traffic snarls <\/strong>&#8211; Airspace closures and aircraft delays have already begun to impact cargo transportation, compounding global supply-chain concerns. Many freight planes utilize Russian airspace, which serves as a vital crossroads for world commerce. <strong>United Parcel Service (UPS) <\/strong>and <strong>FedEx Corp (FDX) <\/strong>of the United States have joined <strong>Lufthansa Cargo <\/strong>of Germany in suspending deliveries to Russia.<\/p>\n\n\n\n<p><strong>Chaos in the global supply chain <\/strong>&#8211; Cancellation and diversion of cargo airlines have placed global supplies of essential components for a number of goods, including platinum, aluminum, sunflower oil, and steel components at risk.<\/p>\n\n\n\n<p><strong>The collapse of the Russian Aviation Industry <\/strong>&#8211; At the start of 2022, Western-made aircraft, including Boeing and Airbus, accounted for <strong>over 80% <\/strong>of <strong>Russia&#8217;s fleet<\/strong>. Many of those planes will be grounded in the coming months as a result of Western nations&#8217; ban on exporting aviation technology, including spare parts, to Russia after its invasion of Ukraine. Analysts predict that <strong>Russia&#8217;s airlines <\/strong>will be <strong>compelled to cannibalize <\/strong>their existing fleets for spare parts.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><strong><em>Cancellation Rates In Bookings<\/em><\/strong><\/h5>\n\n\n\n<p>According to research, as of February 2022, <strong>Germany<\/strong> had the <strong>highest cancellation rate <\/strong>of <strong>773%<\/strong>, followed by <strong>France<\/strong> and <strong>India<\/strong>. Furthermore, <strong>Cyprus<\/strong> had the <strong>highest cancellation <\/strong>rate for inbound flights from <strong>Russia<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-style-twentytwentyone-border\"><img loading=\"lazy\" decoding=\"async\" width=\"998\" height=\"466\" src=\"https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/ukr-gra-1-100-1.jpg\" alt=\"Aviation Market | Innovius Research\" class=\"wp-image-341\" srcset=\"https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/ukr-gra-1-100-1.jpg 998w, https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/ukr-gra-1-100-1-300x140.jpg 300w, https:\/\/www.innoviusresearch.com\/blog\/wp-content\/uploads\/2022\/03\/ukr-gra-1-100-1-768x359.jpg 768w\" sizes=\"auto, (max-width: 998px) 100vw, 998px\" \/><figcaption><strong><em>Cancellation Rates In Bookings For Outbound Flights To Russia, By Countries (%)<\/em><\/strong><\/figcaption><\/figure>\n\n\n\n<p>Data Sources: <strong><a href=\"https:\/\/www.moneycontrol.com\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Money Control\">Money Control<\/a>, <a href=\"https:\/\/www.forbes.com\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Forbes\">Forbes<\/a>, <a href=\"https:\/\/www.airport-technology.com\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Airport Technology\">Airport Technology<\/a>, <a href=\"http:\/\/news.yahoo.com\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Yahoo News\">Yahoo News<\/a>, <a href=\"https:\/\/www.flyingmag.com\" target=\"_blank\" rel=\"noreferrer noopener\" title=\"Flyingmag\">Flyingmag<\/a>,<\/strong> and others<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p><em>To know more about this market study&nbsp;<strong><a href=\"https:\/\/www.innoviusresearch.com\/contact-us.php\">Contact Now<\/a><\/strong><\/em><\/p>\n\n\n\n<p>Read more&nbsp;<strong><a href=\"https:\/\/www.innoviusresearch.com\/blog\/category\/market-report\/\">Market Reports<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction Just when the aviation market was regaining its footing with the relaxation of COVID-19 limitations, air travel is expected to be hampered once again due to the Russia-Ukraine crisis. High oil prices, fewer customers owing to the pandemic, and the possibility of conflict or war are a triple whammy from which airlines will struggle&hellip; <a class=\"more-link\" href=\"https:\/\/www.innoviusresearch.com\/blog\/news\/impact-on-aviation-market-ukraine-russia-conflict\/\">Continue reading <span class=\"screen-reader-text\">Impact on Aviation Market &#8211; Ukraine-Russia Conflict<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[10,4],"tags":[],"class_list":["post-322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market-report","category-news","entry"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/posts\/322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/comments?post=322"}],"version-history":[{"count":18,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/posts\/322\/revisions"}],"predecessor-version":[{"id":355,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/posts\/322\/revisions\/355"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/media\/337"}],"wp:attachment":[{"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/media?parent=322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/categories?post=322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.innoviusresearch.com\/blog\/wp-json\/wp\/v2\/tags?post=322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}