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 the total capacity of Middle East flights also increased by 9.4 percent year-on-year in June.
IATA said the overall load factor among carriers in the region was 79.7 percent in June, a marginal increase of 0.1 percentage point compared to the same month a year earlier.
Load factor is a metric used in the airline industry that measures the percentage of available seat capacity that has been filled with passengers. A high load factor means that the airline has sold most of its available seats.
Strengthening the aviation sector is crucial for Middle Eastern countries, including Saudi Arabia, as the nations seek to diversify their economies and reduce their dependence on oil revenue.
The ambitious national aviation strategy aims to triple the number of passengers by 2030 compared to 2019. It also envisages handling 4.5 million tons of cargo and establishing more than 250 direct destinations from airports in Saudi Arabia.
In May, the UK's General Civil Aviation Authority revealed that the aviation sector would contribute $21 billion to the country's gross domestic product in 2023.
Carriers in the Middle East region handled 9.4 percent of global passengers in June, a figure unchanged from May, according to the report.
IATA further noted that global total demand growth increased by 9.1 percent in June compared to the same period in 2023.
“Demand grew in all regions as the peak summer season began in the north in June. And with overall capacity growth lagging behind demand, we have seen a very strong average load factor of 85 per cent achieved across both domestic and international operations,” said Willie Walsh, IATA CEO.
He added: “Operating at such a high level is both good and challenging. It is therefore even more important for everyone involved to work with the same level of efficiency to minimize delays and get passengers to their destinations on schedule.”
The analysis further said that demand for international travel grew by 12.3 percent annually, while overall capacity increased by 12.7 percent over the same period.
IATA pointed out that domestic demand increased by 4.3 percent year-on-year in June.
Asia Pacific leading from the front
Flights operating in the Asia-Pacific region saw strong growth in June, with passenger demand up 22.6 percent year-on-year, according to the industry body.
Capacity among APAC air carriers grew 22.9 percent year-on-year in June, making the Africa-Asia route the fastest-growing regional pair, up 38.1 percent over the same period.
Flights operating in APAC also handled 31.7 percent of passengers globally in June, a figure unchanged from the previous month.
European air carriers handled 27.1 percent of the total number of passengers in June, followed by North America with 24.2 percent.
“As the Paris Olympics unfold, the aviation industry is proud of its continued role in supporting the Olympic story by connecting many athletes, fans and officials. It's a great reminder of how aviation transforms our very large world into a global community,” said Walsh.
African air carriers saw a 16.9 percent year-on-year increase in passenger demand in June, with capacity increasing by 5.8 percent.
Airlines from the Latin American region saw a 15.3 percent increase in passenger requests 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.
However, load factor among Latin American airlines decreased by 0.2 percentage points to 85.1 percent.
European carriers saw a year-on-year increase in demand of 9.1 percent in June, with capacity up 9.8 percent in the same year.
North American carriers saw a 6.6 percent year-over-year increase in passenger demand in June. The total capacity of these flights increased slightly by 8.6 percent, with the load factor reaching 88.7 percent, the highest of all regions.
IATA also noted that it is optimistic about the growth of future passenger growth worldwide.
“Overall, demand for international travel is strong and continues to show promise for the future,” the industry body said.
Increase in cargo demand
On June 30, the organization released another report that said global air cargo markets saw a 14.1 percent increase in total demand, measured in freight tonne kilometers, compared to a year ago. This is already the seventh month in a row with double-digit year-on-year growth.
According to the analysis, this increase in air cargo requirements was due to restrictions on sea transport.
“Demand for air cargo increased sharply in June. Strong growth across all regions and major trade routes combined delivered a record first half performance for CTK. Shipping restrictions and a booming e-commerce sector are among the strongest drivers of growth,” Walsh said.
He added: “The sector has remained largely resilient to ongoing political and economic challenges and US tariff crackdowns on e-commerce supplies from China. Air cargo looks set to be on solid footing and continue its strong performance in the second half of 2024.
The report revealed that overall air cargo demand growth 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 freight tonne-kilometres, increased by 8.8 percent year-on-year in June.
Middle East carriers saw a 13.8 percent year-on-year rise in air cargo demand in June, while capacity rose 6.9 percent over the same period, according to IATA.
Asia-Pacific airlines saw demand rise 17 percent 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 a 13.1 percent year-on-year increase in demand for air cargo in June. Capacity increased by 15.5 percent year-on-year. In particular, Latin America posted the second-highest increase in international demand in June at 17.2 percent,” IATA said.
Demand by North American carriers for air cargo rose 9.5 percent in June, the weakest of any region. The report revealed that the capacity of these airlines increased by 6 percent year-on-year.
The industry body highlighted that airlines in the Asia-Pacific region handled 33 percent of total air cargo worldwide, followed by North America with 26.9 percent and Europe with 21.4 percent.
Air carriers in the Middle East carried 13.5 percent of total cargo, while airlines in Latin America and Africa handled 2.8 percent and 2 percent of total cargo, respectively.
