RIYADH: Airlines operating in the Middle East saw 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 revealed that total flight capacity from the Middle East also increased by 9.4% year-on-year in June.
IATA said the overall load factor among the region's carriers was 79.7 percent in June, a marginal increase of 0.1 percentage point from the same month a year earlier.
Load factor is a metric used in the aviation industry that measures the percentage of available seat capacity that has been filled with passengers. A high load factor means that an airline has sold most of its available seats.
Strengthening the aviation sector is crucial for Middle Eastern countries, including Saudi Arabia, as the nations aim to diversify their economies and reduce their dependence on oil revenue.
The Kingdom's ambitious national aviation strategy aims to triple the number of passengers by 2030 compared to 2019. It also envisages handling 4.5 million tonnes of cargo and establishing more than 250 direct destinations from Saudi Arabia's airports.
In May, the Kingdom's General 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 from the Middle East region handled 9.4% of passengers globally in June, a figure that was unchanged from May.
IATA also noted that total global demand growth increased by 9.1% in June compared to the same period in 2023.
“Demand increased across all regions as the peak northern summer travel season kicked off in June. And with demand lagging in overall capacity growth, we have seen a very strong average load factor of 85% achieved on both domestic and international operations,” said IATA Director General Willie Walsh.
He added: “Operating at such high load factors is both good and challenging. This makes it even more important that all stakeholders operate with equal levels of efficiency to minimize delays and get travelers to their destinations on time.”
The analysis also said that demand for international travel grew by 12.3% year-on-year, while total capacity increased by 12.7% over the same period.
IATA pointed out that domestic demand rose 4.3 percent year-on-year in June.
The Asia Pacific region leading from the front
According to the industry body, flights operating in the Asia Pacific region saw strong growth in June, with passenger demand up 22.6% from a year earlier.
Air carrier capacity in the APAC region grew 22.9% year-on-year in June, making the Africa-Asia route the fastest-expanding regional pair, growing 38.1% over the same period.
Flights operating in APAC also handled 31.7% of passengers globally in June, a figure that was unchanged from last month.
European airlines handled 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, bringing many of the athletes, fans and officials together. It's a great reminder of how aviation transforms our very large world into a global community,” said Walsh.
African airlines saw year-on-year passenger demand increase by 16.9% in June, while capacity increased by 5.8%.
Airlines in the Latin American region saw a 15.3% increase in passenger demand in June compared to the same period last year. The total capacity of these flights also increased by 15.6% in the same month.
However, the load factor among Latin American airlines fell by 0.2 percentage points to 85.1 percent.
European carriers saw a 9.1% increase in demand compared to last year, while their capacity increased by 9.8% in the same year.
North American carriers saw a 6.6 percent increase in passenger demand in June. The total capacity of these flights increased by 8.6%, while the load factor was 88.7%, the highest of all regions.
IATA also noted that it is optimistic about the increase in future passenger growth globally.
“Overall, demand for international travel is strong and continues to show promise for the future,” the industry body said.
Demand for goods is increasing
On June 30, the organization released another report, saying global air cargo markets saw a 14.1 percent increase in total demand, measured in cargo tonne-kilometres, compared to the same period last year. This is the seventh consecutive month of double-digit year-over-year growth.
According to the analysis, this increase in air cargo requirements was driven by shipping constraints.
“Air cargo demand increased in June. Strong growth across all major regions and lines of business combined for record first half CTK performance. Shipping constraints and a booming e-commerce sector are among the strongest drivers of growth,” said Walsh.
He added: “The sector has remained largely resilient to ongoing political and economic challenges and the US customs crackdown on e-commerce shipments 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 growth in total air cargo demand in the first half of this year also increased by 13.4% compared to the first six months of 2023.
Capacity, measured in available freight tonne-kilometres, was up 8.8% year-on-year in June.
According to IATA, Middle East carriers saw a 13.8% increase in air cargo demand year-on-year in June, while capacity increased by 6.9% over the same period.
Asia-Pacific airlines posted a 17% increase in demand in June, the strongest expansion of any region. Air carrier capacity in this region also grew by 10.7 percent over the same period.
“Latin American carriers saw demand for air cargo rise 13.1% year-on-year in June. Capacity increased by 15.5% year-on-year. In particular, Latin America recorded the second largest increase in international demand growth, up 17.2% in June,” IATA said.
North American carrier air cargo demand rose 9.5% in June, the weakest of all regions. The report showed that the capacity of these airlines increased by 6 percent year-on-year.
The industry body pointed out that airlines in the Asia Pacific region handled 33% of total air cargo globally, 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 accounted for 2.8% and 2% of the total, respectively.
