Iata: Middle East air passenger growth lagged in November AVIATION
Middle East airlines recorded the slowest growth in air passenger demand in November among all regions, affected by revived proposals for travel restrictions to the US from certain countries, according to the International Air Transport Association (Iata).
The industry body’s latest monthly figures showed a 4.9 per cent year-on-year demand increase in November.
This is compared to a 6.9 per cent increase in October – which was a strong rise from 3.9 per cent year-on-year growth in the previous month.
“The market segment to and from North America continues to be affected by the now-lifted ban on personal electronic devices [imposed by the US], as well as a wider impact stemming from the proposed travel restrictions to the US from certain [Muslim-majority] countries,” Iata said yesterday.
Middle Eastern carriers are struggling to fill seats on some routes because of the economic slowdown hitting prime markets in the Arabian Gulf countries, proposed travel bans to the US and geopolitical instability.
Alexandre de Juniac, director-general of Iata, said last month he expects a regional slowdown in the rapid rate of growth from previous years, “bringing the Middle East in line with its regional peers”.
Regional airline capacity rose 4.3 per cent in November compared to 5.3 per cent in October, according to Iata, while load factor increased 0.4 percentage points to 70.1 per cent.
Globally, Iata recorded robust demand in passenger traffic in November, with total revenue per passenger kilometres up 8 per cent compared to November 2016 – the fastest growth rate in five months and up from a 7.3 per cent year-onyear rise in October.
Capacity (available seat kilometres) increased by 6.3 per cent, and load factor rose 1.2 percentage points to 80.2 per cent, Iata said.
Growth was led by Asia-Pacific airlines, whose November traffic climbed 10.8 per cent compared to a year earlier, driven by strong regional economic growth and continuing expansion of options for travellers, Iata said.
Capacity increased 8.7 per cent and the load factor was 78.6 per cent.
“The airline industry is in a good place entering 2018,” said Mr de Juniac. “November’s strong demand gives the industry momentum. Passengers not only have more travel choices than ever, the cost of travel in real terms has never been cheaper.”
Air travel demand in the Middle East is predicted to grow by 7 per cent this year, and net profits for regional carriers will improve to US$600 million in 2018, up from $300m in 2017, Iata said at the end of last year.
Mr de Juniac said 2018 is expected to be the fourth year in a row where the industry’s return on invested capital will exceed the cost of capital.
However, he said challenges remain. “Security threats continue, infrastructure issues persist, fees and charges are a growing part of the cost base and, in many cases airports and air traffic management struggle to keep pace with demand and technology advancements,” he said.