ME Airlines’ Demand Grew in 2011

Middle East airlines saw traffic grow by nearly nine% in 2011 but load factors were among the lowest in the world, the International Air Transport Association (IATA) has said. Capacity on the region's carriers rose 9.7%, putting pressure on load factors, which at 75.4%, were the lowest except for Africa. However, IATA added that December ended on a more positive note, with traffic up 11.7% against an 11% rise in capacity and a load factor of 77.1%.

"Airlines in this region have slowed the pace at which they have expanded but price competitive products and geographically well-positioned hubs are enabling Middle East carriers to continue to improve their share of long-haul markets," IATA said in a statement. It said that global passenger demand rose 5.9% compared to 2010, in line with long-term growth trends. In contrast, global cargo markets contracted by 0.7% for the year; but recorded positive demand growth in December of 0.2%.

Middle East freight was up by 8.2% for the full year and by 10.8% for December. Tony Tyler, IATA’s director general and CEO, said: “Given the weak conditions in Western economies the passenger market held up well in 2011. "But overall 2011 was a year of contrasts. Healthy passenger growth, primarily in the first half of the year, was offset by a declining cargo market." He added: “Improving business confidence and encouraging news from the US economy are heartening developments. But it is far too early to start predicting a soft landing for 2012. The euro zone crisis is far from over."