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9.7% Passenger Demand Growth Seen in Middle Eastern Airlines: IATA

Middle Eastern airlines experienced a 9.7 percent annual growth in passenger demand in May, driven by increased travel to Asia, according to a report by the International Air Transport Association (IATA).

The report highlighted a 9 percent year-on-year growth in total airline capacity in the region for May. Additionally, the Middle East accounted for 9.4 percent of global passenger traffic, a consistent figure from the previous month.

Countries in the Middle East, such as Saudi Arabia, have been bolstering their aviation sectors as part of broader economic diversification efforts to reduce reliance on oil. Saudi Arabia’s national aviation strategy aims to triple passenger numbers from 2019 levels, handle 4.5 million tons of cargo, and establish over 250 direct international destinations from its airports.

A report by Saudi Arabia’s General Authority of Civil Aviation revealed that the aviation sector contributed $21 billion to the Kingdom’s GDP in 2023.

The IATA report underscored the significance of the Asia-Middle East route, noting that it ranks second only to intra-Asia travel in terms of revenue passenger kilometers (RPK). The route has surpassed 2019 levels, setting new records in 2024 and standing 32 percent above the corresponding 2019 values. This surge is attributed to geopolitical tensions and the Ukraine war, which have redirected passengers through the Middle East for safer travel to Asia.

The Russia-Ukraine conflict was also cited as a factor in the growth of the Europe-Middle East route, which saw consecutive RPK increases in April and May over the past two years, reversing previous patterns of decline during these months.

“In the coming months, it will become clearer to what extent these trends could be related to the Russia-Ukraine war,” said IATA.

Earlier this month, another IATA report indicated that Middle Eastern airlines experienced a 15.3 percent year-on-year growth in cargo demand in May, fueled by the rise in e-commerce and maritime issues.

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