RIYADH: Airlines operating in the Middle East saw a 9.6 percent 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 in the Middle East also increased by 9.4 percent in June compared to the same period last year.
IATA announced that the combined load factor among carriers in the region reached 79.7 percent in June, representing a marginal increase of 0.1 percent over the same month last year.
Load factor is a metric used in the aviation industry that measures the percentage of available seat capacity that is filled with passengers. A high load factor indicates that an airline has sold most of its available seats.
Strengthening the aviation sector is critical for Middle Eastern countries, including Saudi Arabia, as they seek to diversify their economies and reduce their reliance on oil revenues.
The kingdom's ambitious national aviation strategy aims to triple passenger numbers by 2030 compared to 2019. It also foresees moving 4.5 million tons of cargo and creating more than 250 direct destinations from Saudi Arabian airports.
In May, the Kingdom's General Directorate of Civil Aviation revealed that the aviation sector would contribute $21 billion to the country's GDP in 2023.
According to this report, transport companies in the Middle East region transported 9.4% of the world's passengers in June, which remained unchanged from May.
IATA also noted that total worldwide demand growth increased by 9.1 percent in June compared to the same period in 2023.
With the start of the northern peak summer travel season in June, demand increased in all regions. And with overall demand capacity growth lagging, we saw a very strong average load factor of 85 percent on domestic and international operations,” said IATA CEO Willie Walsh.
He added: Working with such high load factors is both good and challenging. “This makes it all the more important for all stakeholders to operate with equal levels of efficiency to minimize delays and get passengers to their destinations on schedule.”
The analysis also said that demand for international travel increased by 12.3% year-on-year, while total capacity increased by 12.7% over the same period.
IATA noted that domestic demand rose 4.3 percent year-on-year in June.
The Asia-Pacific region, which is led from the front
According to the report of this organization, active flights in the Asia-Pacific region have grown significantly in June and passenger demand has increased by 22.6% compared to the same period last year.
Capacity among airlines in the APAC region increased by 22.9% year-on-year in June, making the Africa-Asia route the fastest-growing regional pair, which grew by 38.1% over the same period.
Flights operating in APAC also carried 31.7% of global passengers in June, unchanged from last month.
European airlines carried 27.1 percent of all passengers in June, followed by North America with 24.2 percent.
As the Olympic Games unfold in Paris, the aviation industry is proud of its continued role in supporting the Olympic story by bringing together many athletes, fans and officials. “It's a great reminder of how aviation makes our very big world a global community,” Walsh said.
African airlines saw passenger demand grow 16.9 percent year-on-year in June, while capacity rose 5.8 percent.
Airlines in the Latin American region saw a 15.3 percent growth in passenger demand in June compared to the same period last year. The total capacity of these flights also increased by 15.6% in this month.
However, the load factor among Latin American airlines fell by 0.2 percentage points to 85.1 percent.
European firms saw demand rise 9.1 percent year-on-year in June, while capacity rose 9.8 percent year-on-year.
North American airlines saw a 6.6 percent increase in passenger demand in June. The total capacity of these flights increased by 8.6 percent, while the load factor was 88.7 percent, the highest among all regions.
IATA also noted that it is optimistic about future passenger growth growth globally.
“Overall, demand for international travel is strong and remains promising for the future,” the industry body said.
Load demand increases
On June 30, the organization released another report saying that global air cargo markets saw a 14.1 percent growth in total demand, in tonne-kilometers of cargo, compared to the year-ago period. This is the seventh consecutive month of double-digit year-over-year growth.
According to the analysis, this increase in the need for air cargo is due to the limitations of sea transportation.
Air cargo demand increased in June. Strong growth across all major regions and business lines combined for a record-breaking first-half performance in terms of CTKs. Limits on ocean shipping and a booming e-commerce sector are among the strongest drivers of growth, Walsh said.
“The sector remains largely impervious to the ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China,” he added. Air cargo appears to be on solid ground to continue its strong performance in the second half of 2024.
This report showed that the growth of the total 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 tonne-km of available cargo, rose 8.8% year-on-year in June.
According to IATA, Middle East airlines experienced 13.8 percent year-on-year demand growth for air cargo in June, while capacity rose 6.9 percent over the same period.
Asia-Pacific airlines saw demand grow 17 percent in June, the strongest growth of any region. The capacity of airlines in this region has also grown by 10.7% during the same period.
Latin American airlines experienced 13.1 percent annual growth in demand for air cargo in June. The capacity has increased by 15.5% compared to the previous year. “Latin America accounted for the second largest increase in international demand at 17.2 percent in June,” IATA said.
North American airline air cargo demand grew 9.5 percent in June, the weakest of all regions. This report showed that the capacity of these airlines has increased by 6% compared to the previous year.
The industry body emphasized that airlines in the Asia-Pacific region move 33 percent of all air cargo globally, followed by North America with 26.9 percent and Europe with 21.4 percent.
Airlines in the Middle East carried 13.5 percent of total cargo, while airlines in Latin America and Africa moved 2.8 percent and 2 percent of total cargo, respectively.
