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Middle East aviation not immune to global slowdown


Recent air passenger traffic figures predictably reflect the sharp downturn in global economies. And a recent International Monetary Fund (IMF) report dispelled any notion that the Middle East economy might be immune to the significant pressures being felt across the developed world. The region’s airline industry is also inevitably showing signs of strain, with traffic growth rates falling to their lowest levels in years in August. But a key feature is that they are still growing – at least for the time being and albeit at a lower rate. The prospects are that the growth will continue, due to a combination of supply and demand factors. [1371 words]

Unlock the following content in this report:


  • Global storms hit Middle East economy
  • Middle East reports slow RPK growth in Aug-08
  • Dubai and Abu Dhabi add capacity for 32 million more passengers p/a
  • Airline capacity to soar
  • Strong growth rates required, or load factors will fall
  • Conclusion: Middle East not immune to slowdown

Graphs and data:

  • Middle East vs worldwide industry international RPK growth: Sep-07 to Aug-08
  • Premium demand growth by region (% change year-on-year): Aug-08
  • Middle East current fleet: As at 22-Oct-08
  • Middle East aircraft deliveries scheduled over the next 18 months: Oct-08 to Mar-10
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