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Overcapacity emerging as an issue in the Middle East

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Airlines in the Middle East continue to add new aircraft and capacity ahead of demand, according to the latest traffic figures from industry association IATA. Oct-2011 international RPKs in the Middle East rose 7.7%, lagging behind a 9.5% increase in capacity.

The story is much the same for domestic markets in the Middle East, where capacity has risen 8.8%, ahead of demand growth of 8%.

The monthly figures also match the trend for the year to Oct-2011. RPKs have climbed 8.5% while ASKs are up 9.5%. This is still well down from the consistent double-digit levels seen in the past few years, when demand was generally well ahead of capacity growth.

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