Commercial airline passengers still apprehensive about flying in 2022, global survey warns

Some 46 percent of Gulf residents say confusing health regulations will prevent them from flying in 2022 (Shutterstock)
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Updated 06 May 2022
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Commercial airline passengers still apprehensive about flying in 2022, global survey warns

  • Aviation sector on shaky ground due to unclear travel health requirements
  • Concerns come despite despite $246bn in projected travel and tourism profit in the Middle East

RIYADH: Despite optimistic tourism forecasts in the Middle East, a survey conducted by YouGov preceding the Future Aviation Forum revealed widespread misunderstanding about air travel health regulations that may affect the aviation industry.

The study revealed that 46 percent of Gulf residents, 32 percent of Americans, 40 percent of Italians, and 40 percent of Brits, believe that confusing health regulations will prevent them from flying in 2022, a highly negative indicator for the sector’s recovery.

In addition, 68 percent of individuals in the Gulf, 46 percent of respondents in the US, 61 percent of people in Italy, and 65 percent of people in the UK opted not to travel in 2021 because of these same confusions.

The survey took place in the US, the UK, Italy, and the Gulf countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

The apprehension comes despite the World Travel and Tourism Council forecasting that the Middle East’s travel and tourism sector profits could reach $246 billion in 2022.

Last month, Saudi Tourism Board CEO Fahd Hamidaddin revealed that the Kingdom expected a 150 percent growth in inbound tourism in the second quarter of this year.

A report published by FAF said Saudi Arabia’s General Authority of Civil Aviation is establishing a strategy to future-proof the sector against possible upcoming health crises. 

“With passenger traffic not expected to return to pre-2019 levels until 2024, we need to find ways to harmonize health information protocols, to enhance information sharing and transparency among countries,” Abdulaziz Al-Duailej, president of GACA, was cited as saying in the report.

In the FAF report, Saleh Bin Nasser Al-Jasser, the Kingdom’s minister of transport and logistics, said that the clarity around current travel requirements and the confidence in the sector’s ability to withstand a future health crisis are essential for the global aviation sector to recover swiftly.

Business recovery plans for the aviation industry will be one of the main subjects discussed at the FAF, taking place in Riyadh this month.

The event will predominantly host leaders, international CEOs, and regulators who will determine the future of international air travel and drive forward post-pandemic solutions.


Dar Al Arkan annual profit rises 41% to $301m on stronger property sales 

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Dar Al Arkan annual profit rises 41% to $301m on stronger property sales 

RIYADH: Dar Al Arkan Real Estate Development Co. posted a 40.54 percent rise in annual net profit to SR1.13 billion ($301 million) in 2025, supported by higher property sales.

According to a filing on Saudi Exchange, the company’s net profit rose from SR806.84 million a year earlier, while annual revenue increased 3.75 percent year on year to SR3.90 billion. 

Operating profit climbed 18.96 percent to SR1.59 billion, while gross profit rose 15.22 percent to SR1.84 billion. 

“The increase in net income is mainly due to the increase in property sales. The increase in finance costs was offset by the increase in lease revenue, decrease in operating expenses, increase in share of income from associates, and increase in non-operating income from Islamic Murabaha deposits and positively impacted the net income,” the company said in the statement. 

Shareholders’ equity after minority interest stood at SR22.22 billion as of Dec. 31, compared with SR21.09 billion a year earlier. 

In February, Dar Al Arkan announced the full redemption of its $400 million sukuk. 

In a Tadawul statement, the company said that the sukuk were redeemed at maturity using internal resources, with the amount transferred to the designated account. 

The company further said that the impact of the sukuk redemption will appear in its first-quarter financial statement. 

The company also disclosed last month that it had received three white land tax-related invoices totaling about SR201.15 million for plots within the Shams Ar Riyadh development, licensed under the Wafi off-plan sales program. The invoices were valued at SR48.32 million, SR108.10 million, and SR44.73 million , respectively. 

In a separate disclosure in September, Dar Al Arkan said 2.83 million sq. meters of its land portfolio falls under the Kingdom’s White Land Tax Law.