RIYADH: Airlines operating in the Middle East witnessed a 9.6 percent increase 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 showed that total flight capacity in the Middle East also increased by 9.4 percent year-on-year in June.
IATA reported that the overall load factor among carriers in the region was 79.7 percent in June, a slight increase of 0.1 percentage point compared to the same month of the previous year.
Load factor is a metric used in the aviation sector that measures the percentage of available seats filled with passengers. A high load factor means that the airline has sold most of the available seats.
Strengthening the aviation sector is critical for Middle Eastern countries, including Saudi Arabia, as countries seek to diversify their economies and reduce dependence on oil revenues.
The Kingdom's ambitious national aviation strategy aims to triple passenger numbers by 2030 compared to 2019. It also calls for handling 4.5 million tons of cargo and creating more than 250 direct destinations from Saudi Arabia's 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.
According to the report, carriers in the Middle East region handled 9.4 percent of global passengers in June, a figure unchanged from May.
IATA also noted that overall global demand growth increased by 9.1 percent in June compared to the same period in 2023.
“Demand increased in all regions as the peak of the northern summer travel season began in June. And with overall capacity growth lagging behind demand, we saw a very strong average load factor of 85 percent achieved on both domestic and international operations,” said Willie Walsh, IATA CEO.
He added: “Working with such high load factors is both good and challenging. This makes it even more important for all stakeholders to work with the same level of efficiency to minimize delays and get travelers to their destinations on schedule.”
The analysis went on to say that demand for international travel increased by 12.3 percent annually, while total capacity increased by 12.7 percent over the same period.
IATA noted that domestic demand grew by 4.3 percent in June compared to the same period last year.
Asia Pacific, leading from the front
Flights operating in the Asia-Pacific region recorded strong growth in June, with passenger demand up 22.6 percent year-on-year, according to the industry body.
Capacity among air carriers in the APAC region grew by 22.9 percent year-on-year in June, making the Africa-Asia route the fastest-expanding regional pair, up 38.1 percent over the same period.
APAC-based flights also served 31.7 percent of passengers worldwide in June, a figure unchanged from last month.
European carriers served 27.1 percent of the total number of travelers in June, followed by North America with 24.2 percent.
“As the Olympic Games unfold in Paris, the aviation industry is proud of its continuing role in supporting the Olympic story, bringing many athletes, fans and officials together. It's a great reminder of how aviation transforms our very large world into a global community,” said Walsh.
In June, African air carriers saw passenger demand grow by 16.9 percent year-on-year, while capacity increased by 5.8 percent.
Airlines from the Latin American region reported a 15.3 percent increase in passenger demand in June compared to the same period last year. The total capacity of these flights also increased by 15.6 percent in the same month.
The load factor among Latin American airlines, however, fell 0.2 percentage points to 85.1 percent.
In June, European carriers saw demand increase by 9.1 percent year-on-year, while their capacity grew by 9.8 percent year-on-year.
In June, passenger demand at North American carriers increased by 6.6 percent compared to the same period last year. The total capacity of these flights increased by 8.6 percent, and the load factor was 88.7 percent, the highest among all regions.
IATA also noted that it is optimistic about future growth in passenger traffic worldwide.
“Overall, demand for international travel is strong and promising for the future,” the industry said.
Demand for cargo is growing
On June 30, the organization published another report, which said that in global air transport markets, the total demand, measured in tonne-kilometers of cargo, increased by 14.1 percent compared to the same period last year. This is the seventh consecutive month of double-digit growth compared to the same period last year.
According to the analysis, this surge in demand for air cargo was caused by restrictions on sea transport.
“In June, the demand for cargo air transportation increased. Strong growth across all regions and major trade lanes combined for a record first half in terms of CTK. Maritime shipping constraints and the fast-growing e-commerce sector are among the strongest drivers of growth,” said Walsh.
He added: “The sector has remained largely immune to ongoing political and economic challenges and US customs crackdowns on e-commerce supplies from China. Air cargo appears to be on solid ground to continue its strong performance in the second half of 2024.”
The report showed that overall growth in air cargo demand in the first half of this year also increased by 13.4 percent compared to the first six months of 2023.
Capacity, measured in available tonne-kilometers of cargo, increased by 8.8 percent in June compared to the same period last year.
According to IATA, Middle Eastern carriers recorded a 13.8 percent year-on-year increase in air cargo demand in June, with capacity up 6.9 percent over the same period.
Asia-Pacific airlines recorded a 17 percent increase in demand in June, the strongest growth of any region. Air carrier capacity in this region also grew by 10.7 percent over the same period.
“In June, Latin American carriers recorded a 13.1 percent year-on-year increase in demand for air transportation. Capacity increased by 15.5 percent compared to the same period last year. In particular, Latin America registered the second place in the growth of international demand by 17.2 percent in June,” notes IATA.
Demand from North American carriers rose 9.5 percent in June, the weakest of any region. The report showed that the capacity of these airlines increased by 6 percent compared to last year.
The industry body highlighted that airlines in the Asia-Pacific region handled 33 percent of the world's total air cargo volume, followed by North America with 26.9 percent and Europe with 21.4 percent.
Middle East carriers carried 13.5 percent of the total cargo volume, while Latin American and African airlines carried 2.8 percent and 2 percent, respectively.
