RIYADH: Airlines operating in the Middle East witnessed a 9.6 percent growth 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 Eastern flights also surged by 9.4 percent year-on-year in June. 

IATA said that the total load 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 of the previous year. 

The load factor is a metric used in the aviation sector that measures the percentage of available seating capacity that has been filled with passengers. A high load factor signifies that an airline has sold most of its available seats. 

Strengthening the aviation sector is crucial for Middle Eastern countries, including Saudi Arabia, as nations aim to diversify their economies and lessen their reliance on oil revenues.

The Kingdom’s ambitious national aviation strategy aims to triple the number of passengers by 2030 compared to 2019. It also foresees 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 of Civil Aviation revealed that the aviation sector contributed $21 billion to the country’s gross domestic product in 2023.

According to the report, carriers in the Middle East region handled 9.4 percent of the passengers globally in June, a figure that remained unchanged from May. 

IATA said 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 northern summer travel season began in June, and with overall capacity growth lagging demand, we saw a very strong average load factor of 85 percent achieved in both domestic and international operations,” said Willie Walsh, IATA’s director general. 

He added: “Operating with such high load factors is both good and challenging. It makes it even more important for all the stakeholders to operate with equal levels of efficiency to minimize delays and get travelers to their destinations on schedule.” 

The analysis further said that demand for international travel rose annually by 12.3 percent, while total capacity edged up by 12.7 percent during the same period. 

IATA said that domestic demand increased by 4.3 percent year-on-year in June. 

Asia Pacific region leading from the front

According to the industry body, flights operating in the Asia Pacific region posted strong growth in June, with passenger demand rising by 22.6 percent year-on-year. 

Capacity among air carriers in the Asia–Pacific region was up 22.9 percent year-on-year in June, making the Africa-Asia route the fastest expanding regional pair, growing at 38.1 percent during the same period. 

Flights operating in the region also handled 31.7 percent of the passengers globally in June, a figure that remained unchanged from last month. 

European air carriers handled 27.1 percent of the overall travelers in June, followed by North America at 24.2 percent. 

“As the Olympic Games unfold in Paris there is pride across the aviation industry for its continuing role in supporting the Olympic story by bringing many of the athletes, fans, and officials together," said Walsh. "It is a great reminder of how aviation transforms our very big world into a global community.”

African air carriers witnessed a 16.9 percent year-on-year passenger demand growth in June, while the capacity edged up by 5.8 percent. 

Airlines from the Latin American region witnessed a traveler requirement growth of 15.3 percent in June compared to the same period the previous year. The total capacity of these flights also rose by 15.6 percent in the same month. 

The load factor among Latin American airlines, however, decreased by 0.2 percentage points to 85.1 percent. 

European carriers saw a 9.1 percent year-on-year increase in demand in June, while their capacity surged by 9.8 percent during the same year. 

North American carriers witnessed a 6.6 percent year-on-year increase in traveler demand in June. The total capacity of these flights edged up by 8.6 percent, while the load factor stood at 88.7 percent, the highest among all regions. 

IATA said that it is optimistic about the increase of future passenger growth globally. 

“Overall, international travel demand is strong and keeps showing promise for the future,” said the industry body. 

Cargo demand surges

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 cargo tonne-kilometers, compared to the year-ago period. This is the seventh consecutive month of double-digit year-on-year growth. 

According to the analysis, this surge in the requirement for air cargo was driven by maritime shipping constraints. 

“Air cargo demand surged in June. Strong growth across all regions and major trade lanes combined for a record-breaking first-half performance in terms of CTKs. Maritime shipping constraints and a booming e-commerce sector are among the strongest growth drivers,” said Walsh. 

He added: “The sector has remained largely impervious to ongoing political and economic challenges and the US customs crackdown on e-commerce deliveries from China. Air cargo looks to be on solid ground to continue its strong performance into the second half of 2024.” 

The report revealed that total air cargo demand growth in the first half of this year increased by 13.4 percent compared to the first six months of 2023.

Capacity, measured in available cargo ton-kilometers, rose 8.8 percent year-on-year in June. 

According to IATA, Middle Eastern carriers saw 13.8 percent year-on-year demand growth for air cargo in June, while the capacity rose by 6.9 percent during the same period. 

Asia-Pacific airlines saw 17 percent demand growth in June, the strongest expansion among all regions. The capacity of air carriers in this region also grew by 10.7 percent during the same period. 

“Latin American carriers saw 13.1 percent year-on-year demand growth for air cargo in June. Capacity increased 15.5 percent year-on-year. Notably, Latin America posted the second-highest increase in international demand growth at 17.2 percent in June,” said IATA. 

North American carriers’ air cargo demand grew 9.5 percent in June, the weakest among all regions. The report revealed that these airlines’ capacity rose by 6 percent year-on-year. 

The industry body highlighted that airlines in the Asia Pacific region handled 33 percent of the total air cargo globally, followed by North America at 26.9 percent and Europe at 21.4 percent. 

Air carriers in the Middle East transported 13.5 percent of the overall cargo, while airlines in Latin America and Africa handled 2.8 percent and 2 percent of the total, respectively.