The International Air Transport Association (IATA) has revealed that Middle East airlines achieved the highest profit per passenger in 2023.
This milestone reflects the region’s strategic hub operations and strong connectivity, solidifying its position as a global leader in aviation profitability.
According to agbi.com, the region’s carriers made $23.10 profit per passenger in 2024, IATA said. This is more than double the figure for the second-placed market, North America.
IATA expects the Middle East’s figure to rise to $23.90 per passenger in 2025.
“Passenger traffic has remained strong in 2024,” Iata said in a report published this week. “For 2025 we expect traffic to continue to grow, albeit at a somewhat slower pace, as all regions surpass pre-pandemic levels.”
The Middle East, while profitable, has registered only “modest growth” in international passenger numbers. This figure increased by 8 percent in 2024, below the global average of 10.7 percent.
IATA said this was mainly down to a decline in traffic relating to Israel and neighbouring countries.
It added, however, that the Middle East and Asia-Pacific are expected to record the strongest gains in airline traffic in the coming years. Iata is predicting an increase of 8.8 percent for the Middle East in 2025.
IATA is also expecting lower oil prices to help airlines’ profitability, given that fuel makes up 30 percent of costs. The price of jet fuel has dropped from $139 per barrel in 2022 to $87 per barrel assumed for 2025.
Over the next two decades, the number of global airline passengers is projected to increase at an average annual rate of 3.8 percent. This will lead to a net addition of over 4.1 billion passenger journeys by 2043 compared to 2023.
The Middle East is expected to increase its share in the global market by just 0.1 percentage point by 2043, to reach 5.7 percent.
Air traffic in Mena has rebounded beyond pre-pandemic levels, with Saudi Arabia and the UAE marking the highest gains in volume, according to a study by Airports Council International in November.
Despite this recovery, international airfares in some countries remain elevated. Fares increased by 22 percent in the UAE and by 10 percent in Oman.
John Grant, partner at UK consultancy Midas Aviation and an AGBI columnist, said a number of factors were weighing on the industry.
“Air fares are higher because while traffic is back to pre-pandemic levels, capacity isn’t quite there as airlines grapple with the supply chain challenges of the industry. “These range from Boeing’s delivery and production issues, to the Airbus issues on Pratt & Whitney engines used by most carriers, licensed engineers and maintenance facilities,” Grant said.
