The Sky’s the Limit: Middle Eastern Airlines Soar with 9.7% Annual Growth in Passenger Demand
In a sky-high feat, Middle Eastern airlines experienced a robust 9.7 percent surge in passenger demand in May, driven by a spike in Asia-related travel, as reported by the International Air Transport Association (IATA).
Aviation Sector Takes Flight in the Middle East
The latest IATA report revealed that airlines in the Middle East region witnessed a 9 percent year-on-year growth in total capacity in May, solidifying the region’s position as a global aviation hub. Middle Eastern countries, including Saudi Arabia, have been ramping up efforts to bolster their aviation sector, aiming to diversify their economies away from oil dependency.
Saudi Arabia, in particular, has set ambitious goals for its aviation industry, aiming to triple the number of passengers compared to 2019, handle 4.5 million tons of cargo, and establish over 250 direct flight destinations from the Kingdom’s airports to global locations.
Asia-Middle East Route Soars to New Heights
The report highlighted the strength of travel between Asia and the Middle East, noting that the Asia-Middle East route ranks second only to intra-Asia in terms of revenue passenger kilometers (RPK). The ongoing geopolitical tensions and the Russia-Ukraine war have further fueled demand for flights between the two regions, as passengers seek safer travel routes.
Cargo Demand Takes Off in the Middle East
In a parallel trend, Middle Eastern airlines experienced a remarkable 15.3 percent year-on-year growth in cargo demand in May, driven by the rise of e-commerce and maritime issues. The total cargo capacity of carriers in the region also increased by 2.7 percent during the same period, underscoring the region’s pivotal role in global cargo transportation.
Global Passenger Demand on the Rise
On a global scale, passenger demand surged by 10.7 percent in May compared to the previous year, with airlines filling a record 83.4 percent of their seats. The Asia-Pacific region led the charge in passenger demand growth, with a remarkable 27 percent increase in May.
Saudi Arabia’s Aviation Sector Takes Flight
Saudi Arabia’s aviation sector continues to soar, contributing $21 billion to the Kingdom’s GDP in 2023 and generating $32.2 billion in tourism receipts. The Kingdom’s ambitious Vision 2030 economic diversification plan includes plans to boost the business travel sector and launch a new airline, Riyadh Air, in 2025, aiming to fly to 100 countries by 2030.