RIYADH: Airlines operating in the Middle East saw passenger demand grow by 9.6 percent in June compared to the same period in 2023, boosted by the summer holiday season, according to an industry body.
The International Air Transport Association revealed that total capacity to the Middle East rose by 9.4 percent year-on-year in June.
IATA said the regional airline load factor was 79.7 percent in June, up slightly by 0.1 percentage point compared to the same month last year.
Load factor is a unit of measurement used in the aviation sector that measures the percentage of available seat capacity that is filled by passengers. A high load factor means that the airline has sold most of its available seats.
Strengthening the aviation sector is important for Middle Eastern countries, including Saudi Arabia, as they aim to diversify their economies and reduce their dependence on oil revenues.
Saudi Arabia's ambitious national aviation strategy aims to triple passenger traffic by 2030 compared to 2019 levels, as well as project a cargo capacity of 4.5 million tonnes and establish more than 250 direct destinations from Saudi airports.
In May, the kingdom’s Civil Aviation Authority revealed that the aviation sector would contribute $21 billion to the country’s gross domestic product in 2023.
Carriers in the Middle East handled 9.4 percent of global passengers in June, unchanged from May, the report said.
IATA also said that global aggregate demand growth rose by 9.1 percent in June compared to the same period in 2023.
“Demand is picking up across all regions as the northern summer tourist season kicks off in June, and with overall capacity growth lagging demand, we are seeing very strong average load factors of up to 85 per cent across both domestic and international flights,” said Willie Walsh, IATA’s Director General.
“Operating under such high load factors is both challenging and rewarding, making it all the more important that all stakeholders act with equal efficiency to reduce delays and get travelers to their destinations on time,” he added.
The analysis also said international travel demand rose 12.3 percent annually, while total capacity rose 12.7 percent over the same period.
IATA says domestic demand rose 4.3 percent year-on-year in June
Asia Pacific leads from the front
According to industry data, flights operating in the Asia Pacific region saw robust growth in June, with passenger demand up 22.6 percent year-on-year.
Airline capacity in the Asia Pacific region increased by 22.9 per cent year-on-year in June, with Africa-Asia being the fastest growing regional pairing, growing by 38.1 per cent over the same period.
Flights operating in the Asia Pacific region also carried 31.7 per cent of global passengers in June, unchanged from the previous month.
European airlines handled 27.1 percent of all travelers in June, followed by North America at 24.2 percent.
“As the Olympics get underway in Paris, the aviation industry is proud to continue its role in supporting the Olympic story, bringing athletes, fans and officials together. It is a great reminder of how aviation has transformed our great world into a global community,” Walsh said.
African airlines saw passenger demand grow 16.9 percent year-on-year in June, while capacity rose slightly by 5.8 percent.
Airlines from Latin America saw a 15.3 percent increase in travel demand in June compared to the same period last year, and total capacity on these flights also increased by 15.6 percent in the same month.
However, Latin American airlines' load factor fell 0.2 percentage points to 85.1 percent.
European carriers saw demand rise 9.1 percent year-on-year in June, while capacity rose 9.8 percent on the year.
North American airlines saw a 6.6% year-over-year increase in passenger demand in June, with total capacity on these flights up 8.6%, while load factors were the highest of any region at 88.7%.
IATA also noted that there is optimism about future global passenger growth.
“Overall, international travel demand is strong and shows good prospects for the future,” the industry association said.
The demand for freight transport is soaring.
On June 30, the organization released another report, stating that the global air cargo market grew by 14.1 percent in overall demand measured in ton-kilometres compared to the same period last year, marking the seventh consecutive month of double-digit year-on-year growth.
The analysis found that this increase in air freight demand was due to constraints in maritime transport.
“Air freight demand surged in June. Strong growth across all regions and major trade routes combined to drive the first half of the year to record CTK rates. Ocean freight restrictions and a booming e-commerce sector were the strongest growth drivers,” Walsh said.
“The sector remains unaffected by ongoing political and economic challenges, including the US customs crackdown on e-commerce shipments from China. Air cargo appears to remain resilient and will continue to perform strongly in the second half of 2024,” he added.
The report revealed that overall air cargo demand growth in the first half of this year increased by 13.4 percent compared to the first six months of 2023.
Capacity measured in ton-kilometres of available freight rose 8.8 percent year-on-year in June.
According to IATA, Middle Eastern airlines saw air cargo demand grow by 13.8 percent year-on-year in June, while capacity increased by 6.9 percent over the same period.
Asia Pacific airlines saw demand rise 17 percent in June, the biggest gain of any region. Airline capacity in the region also rose 10.7 percent over the same period.
“Latin America carriers saw air cargo demand grow by 13.1% year-on-year in June, with capacity increasing by 15.5% year-on-year. Latin America in particular saw the second-fastest growth in international demand at 17.2% in June,” IATA reported.
Air cargo demand at North American airlines rose 9.5 percent in June, the weakest of any region, the report said. Capacity at these airlines increased 6 percent year-on-year.
The industry body highlights that airlines in the Asia-Pacific region are responsible for 33 per cent of global air cargo, followed by North America at 26.9 per cent and Europe at 21.4 per cent.
Middle Eastern airlines carried 13.5 percent of all cargo, while Latin American and African airlines carried 2.8 percent and 2 percent of all cargo, respectively.
