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Overcapacity emerging as an issue in the Middle East

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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