RIYADH: Airlines operating in the Middle East saw a 9.6% increase in passenger demand in June compared to the same period in 2023, thanks to the summer holiday season, according to an industry body.
The International Air Transport Association said total capacity on Middle East flights increased by 9.4% in June compared to the previous year.
IATA said the region's airlines had a total load factor of 79.7% in June, up 0.1 percentage point from the same period last year.
Load factor is a metric used in the airline industry 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.
Middle Eastern countries, including Saudi Arabia, see strengthening their aviation sectors as crucial as they aim to diversify their economies and reduce their dependence on oil imports.
The kingdom’s ambitious national aviation strategy aims to triple passenger numbers by 2030 compared to 2019. It also expects to handle 4.5 million tonnes of cargo and open more than 250 direct destinations from Saudi Arabian airports.
In May, Saudi Arabia's Civil Aviation Authority said the aviation sector would contribute $21 billion to Saudi Arabia's GDP in 2023.
According to the report, Middle Eastern airlines handled 9.4% of global passengers in June, the figure remaining unchanged from May.
IATA also said global total demand growth in June was 9.1% higher than the same period in 2023.
“Demand picked up across all regions as the peak northern summer travel season began in June,” said Willie Walsh, IATA’s director general. “And while overall capacity growth lagged behind demand, we achieved a very strong average load factor of 85 per cent for both domestic and international operations.”
He added: “Operating at such high loads can be both rewarding and challenging. It is more important than ever that all stakeholders operate at the same level of efficiency to minimise delays and get travelers to their destinations on time.”
According to the analysis, demand for international travel increased by 12.3% year-on-year, while overall capacity increased by 12.7% over the same period.
IATA said domestic demand rose 4.3% in June compared to a year earlier.
Asia Pacific takes the lead
Flights operating in the Asia Pacific region saw strong growth in June, with passenger demand up 22.6% year-on-year, according to the industry body.
As of June, Asia Pacific airlines’ traffic grew 22.9% year-on-year, with Africa-Asia routes being the fastest-growing regional pair, growing 38.1% over the period.
Flights operating in APAC handled 31.7% of global passengers in June, unchanged from the previous month.
European airlines handled 27.1% of all travelers in June, followed by North America with 24.2%.
“As the Olympic Games unfold in Paris, the aviation industry is proud to play an ongoing role in bringing together athletes, fans and officials to support the Olympic story. It is a great reminder of how aviation transforms our very large world into a global community,” Walsh said.
African airlines reported a 16.9% increase in passenger demand in June compared to the previous year, while capacity increased by 5.8%.
Latin American airlines saw a 15.3% increase in passenger demand in June compared to the same period last year. Total capacity for these flights also increased by 15.6% in the same month.
However, load factors for Latin American airlines fell 0.2% to 85.1%.
European airlines reported a 9.1% increase in demand in June compared to a year earlier, while traffic volumes surged 9.8% in the same period.
North American airlines saw a 6.6% increase in passenger demand in June compared to the previous year. Total capacity on these flights was up 8.6%, and the load factor was 88.7%, the highest of any region.
IATA also said it was optimistic about future global passenger growth.
“Overall, international travel demand remains strong and continues to show promise for the future,” the industry group said.
Surge in cargo demand
On June 30, the organization released another report, stating that total demand in the global air cargo market increased by 14.1% year-over-year, measured in cargo tonne-kilometers. This was the seventh consecutive month of double-digit annual growth.
Analysis suggests that the surge in air cargo demand was driven by constraints on maritime transport.
“Air cargo demand surged in June, with strong growth across all regions and key trade routes combined to deliver a record first half performance in terms of CTKs, with ocean freight constraints and booming e-commerce being among the strongest drivers of growth,” Walsh said.
“The sector has been largely unaffected by ongoing political and economic challenges and the US Customs crackdown on e-commerce shipments from China. Air cargo appears to have a solid foundation for continued strong performance in the second half of 2024,” he added.
The report also said that total air cargo demand growth in the first half of this year is expected to increase by 13.4% compared to the first half of 2023.
In June, available cargo tonne-kilometres increased by 8.8% year-on-year.
According to IATA, Middle Eastern airlines saw a 13.8% increase in air cargo demand in June compared to a year ago, with capacity increasing by 6.9% over the same period.
Asia Pacific airlines saw demand growth of 17% in June, the strongest expansion of any region. Capacity for airlines in the region also increased by 10.7% over the same period.
“Latin American airlines saw a 13.1% increase in demand for air cargo in June compared to the previous year. Capacity increased by 15.5% year-on-year. Latin America in particular had the second-highest growth in international demand in June, at 17.2%,” IATA said.
Air cargo demand for North American airlines rose 9.5% in June, the weakest among all regions. The report said capacity for these airlines increased 6% year-over-year.
The industry body highlighted that Asia Pacific airlines handled 33% of global air cargo volume, followed by North America with 26.9% and Europe with 21.4%.
Middle Eastern airlines carried 13.5% of total cargo, while Latin American and African airlines handled 2.8% and 2%, respectively.
