Middle East carriers record 14.3% increase in passenger demand

The Middle East led the way for other global airlines again as carriers in the region witnessed a healthy 14.3 per cent growth in passenger demand in October 2009 over the same month a year earlier.

According to the International Air Transport Association (Iata), carriers in the Middle East recorded the "highest growth among the regions", as they continued to add capacity, increasing 15.3 per cent in October this year and outpacing the growth in demand.

The Middle East, which also recorded the highest growth of 9.9 per cent in the year-to-date passenger traffic in 2009 over the same period last year, was the only region to record positive growth while all others were in the negative.

Compared to September, however, seasonally adjusted passenger volumes rose by 0.8 per cent. Carriers in all regions, except the Asia-Pacific, the Middle East and North America saw improved demand in October compared to September. The Middle East recorded an 18.2 per cent growth in September 2009.

Overall, Iata said international scheduled traffic results for October 2009 showed improved conditions, with passenger demand up 0.5 per cent compared to October last year, and demand for international cargo rising to 0.5 per cent below previous year levels.

The global aviation trade body said it was "significantly better" than the 5.4 per cent decline in September and that load factors for passenger continue at pre-recession levels of 78 per cent.

"The crisis has cost the industry two years of growth. Adjusting costs and capacity to meet that reality will be challenging," said Giovanni Bisignani, Iata's Director-General and CEO.

Meanwhile, compared to October 2008, overall passenger capacity was down 3.3 per cent. Stripping out seasonal fluctuations, passenger capacity has been essentially flat throughout 2009. "The industry is financially sick, and the medicine of cross-border consolidation is off limits due to an archaic regulatory structure. Market forces should guide our commercial operations. A financially sustainable aviation industry is necessary for global economy," said Bisignani.

Graphic: Two years of lost growth - slow improvement trend

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.