Middle East Airlines’ Profits to Reach $3.8 Billion
Airline profitability in the Middle East is forecasted to top USD 3.8 billion in 2024, a 22.5% increase from 2023’s USD 3.1 billion, despite regional geopolitical challenges like the Israel-Gaza conflict, according to the International Air Transport Association (IATA). Key contributors include Etihad, Emirates, Qatar, Saudi, and Oman Air, noted for their extensive networks and high service quality, attracting more passengers and boosting cargo volumes. Substantial investments in modern fleets and innovative services by these airlines enhance the travel experience, reinforcing the region’s economic resilience and aiding global aviation recovery.
The Gulf region benefits from robust economies, led by the UAE and Saudi Arabia, delivering significant growth in passenger and cargo volumes. The Middle East’s net profit per passenger, USD 15.20, is the highest globally, surpassing Europe and Asia-Pacific. Revenue Passenger Kilometres (RPK) and Available Seat Kilometers (ASK) are expected to rise by 9.3% and 10.8%, respectively. While geopolitical risks pose threats, particularly to Levant carriers, Gulf carriers remain less impacted unless Iran-Israel tensions escalate.
Globally, airline profitability is also projected to improve in 2024, with net profits reaching USD 30.5 billion, up from USD 27.4 billion in 2023. Industry revenue is expected to hit USD 996 billion, with passenger revenues rising to USD 744 billion. Passenger demand is anticipated to grow annually by 3.8% from 2023 to 2043. Willie Walsh, IATA’s Director General, highlighted aviation’s critical role in global trade and economic prosperity, emphasizing the sector’s vital importance to individuals and economies.