RIYADH: Airlines operating in the Middle East experienced a 9.6 percent growth in passenger demand in June compared to the same period in 2023, driven by the summer holidays, according to an industry body.
The International Air Transport Association revealed that total capacity for flights from the Middle East also increased by 9.4 percent year-on-year in June.
IATA said the overall cabin factor among carriers in the region stood at 79.7 percent in June, representing a marginal increase of 0.1 percentage point compared to the same month last year.
Throw factor is a metric used in the airline industry that measures the percentage of the available seating capacity that has been filled with passengers. A high cabin factor means an airline has sold most of its available seats.
Strengthening the aviation sector is crucial for countries in the Middle East, including Saudi Arabia, as nations strive to diversify their economies and reduce their dependence on oil revenues.
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 tons of cargo and establishing over 250 direct destinations from airports in Saudi Arabia.
In May, the Kingdom's General Authority for Civil Aviation revealed that the aviation sector would contribute $21 billion to the country's gross domestic product by 2023.
According to the report, carriers in the Middle East region handled 9.4 percent of passengers globally in June, a figure that remained unchanged from May.
IATA further noted that total demand growth worldwide increased by 9.1 percent in June compared to the same period in 2023.
“Demand grew across all regions as the peak summer season began in June. And with overall capacity growth lagging behind demand, we saw a very strong average load factor of 85 percent achieved across both domestic and international operations,” said IATA Director General Willie Walsh.
He added: “Working with such high load factors is both good and challenging. It makes it even more important for all stakeholders to work at the same level of efficiency to minimize delays and get travelers to their destinations on schedule.”
The analysis further said that demand for international travel increased annually by 12.3 percent, while overall capacity increased by 12.7 percent during the same period.
IATA pointed out that domestic demand rose 4.3 percent year-on-year in June.
Asia Pacific leads from the front
According to the trade body, flights in the Asia-Pacific region saw strong growth in June, with passenger demand up 22.6 percent year-on-year.
Capacity among airlines in the APAC region increased by 22.9 percent year-on-year in June, making the Africa-Asia route the fastest-growing regional pair, and grew by 38.1 percent over the same period.
Flights in APAC also handled 31.7 percent of passengers globally in June, a figure that remained unchanged from last month.
European airlines handled 27.1 percent of total travelers in June, followed by North America with 24.2 percent.
“As the Olympic Games unfold in Paris, there is pride in the aviation industry for its continued role in supporting the Olympic story by bringing together many of the athletes, fans and officials. It is a great reminder of how aviation is transforming our very large world to a global society, says Walsh.
African airlines witnessed a 16.9 percent increase in passenger demand year-on-year in June, while capacity increased by 5.8 percent.
Airlines from the Latin American region experienced a 15.3 percent increase in passenger demand 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, the cabin factor among Latin American airlines decreased by 0.2 percentage points to 85.1 percent.
European airlines saw a 9.1 percent increase in demand year-on-year in June, while their capacity increased by 9.8 percent over the same 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 stood at 88.7 percent, the highest among all regions.
IATA also noted that they are optimistic about the growth of future passenger growth globally.
“Overall, demand for international travel is strong and continues to show promise for the future,” the trade body said.
Demand for cargo is increasing
On June 30, the organization released another report saying that global air cargo markets saw a 14.1 percent growth in total demand, measured in freight tonne kilometers, compared to the previous year. This is the seventh consecutive month of double-digit growth on a year-over-year basis.
According to the analysis, this increase in demand for air freight was driven by shipping restrictions.
“Air freight demand increased in June. Strong growth across all regions and major trade routes combined for a record first half performance for CTK. Shipping restrictions and a booming e-commerce sector are among the strongest drivers of growth,” said Walsh.
He added: “The sector has remained largely impervious to ongoing political and economic challenges and the US tariff crackdown on e-commerce shipments from China. Airfreight looks to be on solid ground to continue its strong performance in the second half of 2024.”
The report revealed that total demand for air cargo 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 load tonne-kilometres, rose 8.8 percent year-on-year in June.
According to IATA, airlines in the Middle East saw 13.8 percent year-on-year demand for air cargo in June, while capacity increased by 6.9 percent over the same period.
Asia Pacific airlines saw demand growth of 17 percent in June, the strongest expansion of any region. Airline capacity in this region also increased by 10.7 percent during the same period.
“Latin American airlines saw 13.1 percent year-on-year air cargo demand in June. Capacity increased 15.5 percent year-on-year. Notably, Latin America saw the second highest increase in international demand growth at 17.2 percent in June,” IATA said.
North American airline demand for air cargo rose 9.5 percent in June, the weakest of any region. The report showed that these airlines' capacity increased by 6 percent year-on-year.
The industry body highlighted that Asia Pacific airlines handled 33 percent of total 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 handled 2.8 percent and 2 percent of total cargo, respectively.
