Middle East outpaces global air traffic growth

31 May 2016

Region registers 12.7 per cent demand growth in April

The Middle East posted a 12.7 per cent air passenger increase in April, and is the only region to see a double-digit percentage growth in demand, according to a report by the Canada-based International Air Transport Association (IATA).

Capacity growth at 14.8 per cent, however, outstripped demand growth, causing load factor or capacity utilisation to contract by 1.4 percentage points to 75.6 per cent during the month.

In comparison, global demand expanded by merely 4.6 per cent, the slowest since January 2015. International passenger demand rose slightly higher, at 4.8 per cent.

The Brussels airport attack is seen to have exerted a negative impact on global travel demand growth in April, without which the rate should have risen by 5 per cent, said IATA.

Despite conflicts across the Middle East, the rise in air journeys could be attributed mainly to lower average fares. Most airlines passed on part of the savings made from lower jet fuel costs to passengers in the form of cheaper ticket prices due to the removal of fuel surcharges.

Leading Gulf airlines such as Dubai’s Emirates, Qatar Airways and Abu Dhabi flag carrier Etihad Airways cut ticket prices by an average of 17 per cent for flights to Middle Eastern destinations in January, and 8 per cent to India, when compared with January 2015.

Stay informed when you are on the move

All MEED subscribers have free access to the MEED app. Download it today, available on Apple and Android devices

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.