Middle Eastern airlines saw a notable 10.8 percent annual increase in demand during March 2024 with their capacity increasing 13.9 percent compared to March 2023. The latest report from the International Air Transport Association (IATA) also reveals that Middle Eastern carriers reported strong air cargo demand growth of 19.9 percent annually with remarkable expansions in the Middle Eastern-Europe market. Notably, the Middle East makes up 9.4 percent of global travel while the Asia Pacific region takes the largest share at 31.7 percent.
Global aviation sector grows
Globally, airlines demonstrated growth, with a 13.8 percent annual increase in total demand. Total capacity, measured in available seat kilometers (ASK), also rose by 12.3 percent annually. Meanwhile, the load factor for March reached an impressive 82 percent.
“Demand for travel is strong. And there is every indication that this should continue into the peak Northern Summer travel season,” said Willie Walsh, IATA’s director general. Therefore, it is critical that airlines have the capacity to meet this demand. This ensures a hassle-free travel experience for passengers, explained Walsh.
On the other hand, domestic demand saw a 6.6 percent annual increase. Meanwhile, capacity increased 3.4 percent and load factor reached 82.6 percent. China continued to be the leading domestic market with 17.6 percent annual growth. Other domestic markets also revealed stable growth except for Australia. IATA attributes the decline in Australia’s growth to a possible economic slowdown during Q1.
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Air cargo demand picks up
Middle Eastern carriers saw a 19.9 percent increase in demand for air cargo in March, the strongest of all regions. Notably, the Middle East-Europe market was the strongest performing with 38.3 percent growth. Following closely came the Middle East-Asia market, which grew 19.6 percent annually. Air cargo capacity increased by 10.6 percent in the Middle East during March.
The 10.3 percent increase in global air cargo demand further bolstered the global aviation sector in March, marking the fourth consecutive month of double-digit year-on-year growth. Air cargo capacity also saw an increase of 7.3 percent compared to March 2023. “With global cross-border trade and industrial production continuing to show a moderate upward trend, 2024 is shaping up to be a solid year for air cargo,” said Walsh.
The IATA report also revealed that global cross-border trade increased by 1.2 percent while industrial production rose by 1.6 percent in February. Moreover, in March, manufacturing output Purchasing Managers’ Index (PMI) climbed to 51.9, indicating expansion. With an increase in export orders, demand for air cargo picked up, indicating a recovery in both manufacturing and global exports.
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