RIYADH: Airlines operating in the Middle East recorded a 9.6% growth in passenger demand in June compared to the same period in 2023, driven by the summer holiday season, according to an industry body.
The International Air Transport Association revealed that total flight capacity to the Middle East increased 9.4 percent year-on-year in June.
According to IATA, the overall load factor among the region's carriers stood at 79.7% in June, a marginal increase of 0.1 percentage points compared to the same month last year.
Load factor is a metric used in the aviation industry that measures the percentage of available seats that have been occupied by passengers. A high load factor means that an airline has sold most of its available seats.
Strengthening the aviation sector is critical for Middle Eastern countries, including Saudi Arabia, as these nations aim to diversify their economies and reduce dependence on oil revenues.
The Kingdom’s ambitious national aviation strategy aims to triple the number of passengers by 2030 compared to 2019. It also plans to handle 4.5 million tonnes of cargo and establish more than 250 direct destinations from airports in Saudi Arabia.
In May, the Kingdom's General Civil Aviation Authority revealed that the aviation sector contributed $21 billion to the country's gross domestic product in 2023.
According to the report, carriers from the Middle East region handled 9.4% of global passengers in June, a figure that remained unchanged from May.
IATA also noted that total global demand growth increased 9.1% in June compared to the same period in 2023.
“Demand has grown across all regions, with the northern peak summer season starting in June. And with overall capacity growth lagging demand, we have seen a very strong average load factor of 85 percent achieved in both domestic and international operations,” said Willie Walsh, IATA's Director General.
He added: “Operating at such high load factors is both positive and challenging. This makes it even more important for all stakeholders to operate at the same levels of efficiency to minimize delays and get travellers to their destinations on schedule.”
The analysis also found that international travel demand increased by 12.3% annually, while total capacity increased by 12.7% over the same period.
IATA highlighted that domestic demand increased by 4.3% in June on an annual basis.
Asia-Pacific region leads the way
According to the industry association, flights operated in the Asia-Pacific region saw strong growth in June, with passenger demand increasing 22.6% year-on-year.
In June, carrier capacity in the APAC region increased by 22.9% year-on-year, making the Africa-Asia route the fastest growing regional pair, growing by 38.1% over the same period.
Flights operating in the APAC region also handled 31.7% of global passengers in June, a figure that remained unchanged from last month.
European airlines handled 27.1% of total travelers in June, followed by North America with 24.2%.
“As the Olympic Games unfold in Paris, there is pride throughout the aviation industry in its continued role in supporting Olympic history by bringing together so many athletes, fans and officials. It is a great reminder of how aviation transforms our great world into a global community,” Walsh said.
In June, African airlines recorded passenger demand growth of 16.9% year-on-year, while capacity increased by 5.8%.
Airlines in the Latin American region saw a 15.3 percent increase in traveler demand in June compared to the same period last year. Total capacity for these flights also increased by 15.6 percent in the same month.
The load factor of Latin American airlines, however, decreased by 0.2 percentage points, standing at 85.1%.
In June, European airlines saw demand increase by 9.1% year-on-year, while their capacity increased by 9.8% year-on-year.
North American carriers saw a 6.6 percent year-over-year increase in traveler demand in June. Total capacity on these flights increased 8.6 percent, while load factor stood at 88.7 percent, the highest among all regions.
IATA also said it was optimistic about future growth in global passenger numbers.
“Overall, demand for international travel is strong and continues to show promising signs for the future,” the industry association said.
Increased demand for goods
On June 30, the organization released another report, saying that global air cargo markets saw a 14.1 percent increase in total demand, measured in cargo tonne-kilometers, compared to the same period last year. This is the seventh consecutive month of double-digit growth year-over-year.
According to the analysis, this increase in demand for air cargo was driven by limitations in maritime transport.
“Air freight demand increased in June. Strong growth across all regions and major trade routes combined for a record first-half performance in terms of CTKs. Ocean freight constraints and a booming e-commerce sector are among the strongest growth drivers,” Walsh said.
He added: “The sector has remained largely invulnerable to the ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China. Air freight appears to be on solid ground to continue its strong performance in the second half of 2024.”
The report revealed that total air cargo demand in the first half of this year increased by 13.4% compared to the first six months of 2023.
In June, capacity, measured in available cargo tonne-kilometres, increased 8.8 percent year-on-year.
According to IATA, Middle Eastern airlines recorded a 13.8% annual growth in air cargo demand in June, while capacity increased by 6.9% over the same period.
Asia-Pacific airlines saw demand growth of 17 percent in June, the strongest expansion among all regions. Carrier capacity in the region also grew by 10.7 percent over the same period.
“Latin American carriers saw demand growth of 13.1 percent year-over-year for air cargo in June. Capacity increased 15.5 percent year-over-year. In particular, Latin America saw the second highest increase in international demand growth at 17.2 percent in June,” IATA said.
Air cargo demand from North American carriers grew 9.5 percent in June, the weakest among all regions. The report found that capacity for these airlines increased 6 percent year-over-year.
The industry association highlighted that airlines in the Asia-Pacific region handled 33 percent of total global air freight, followed by North America with 26.9 percent and Europe with 21.4 percent.
Middle Eastern airlines carried 13.5% of the total cargo, while Latin American and African airlines handled 2.8% and 2% of the total, respectively.
