Middle East Aviation Sector is Growing Faster

Middle East airlines are continuing to see business grow faster than elsewhere in the world, according to the latest monthly figures for the International Air Transport Association (IATA). International scheduled traffic statistics for July showed continued strengthening of demand for both passenger and cargo traffic. Compared to July 2009, international passenger demand was up 9.2% while international scheduled freight traffic showed a 22.7% improvement. Middle Eastern carriers continue to add the largest amount of capacity, up 12.8% in July and 13.2% over the first seven months of the year.

The region's carriers have managed to increase demand at even higher levels, hitting 16.8% in July and 19.4% over the first seven months of the year and IATA predicts load factors and financial performance will record improvements this year. These year-on-year global comparisons for July were less than the June growth data showing 11.6% and 26.6% increases for passenger and cargo traffic, respectively. The apparent slowdown was entirely due to the fact that by July 2009, traffic was already starting to recover.

After adjusting for seasonality, the improvement in demand was faster month-to-month in July than it was in June. "The recovery in demand has been faster than anticipated," said IATA director general and chief executive officer Giovanni Bisignani. "But, as we look towards the end of the year, the pace of the recovery will likely slow. "The jobless economic recovery is keeping consumer confidence fragile, particularly in North America and Europe.-Gulf Daily