COVID-19 from Threat to Opportunity

Dear Colleagues,

It is my pleasure to provide you with the 33rd Issue of "3D Insight", a bi-annual publication by the Arab Air Carriers' Organization and Seabury Consulting. Please click here to download the publication.

The first section of this issue analyzes the impact of COVID-19 on the airline industry and highlights how this situation can be seen as a catalyst for innovation and change.

The second section of this issue covers statistical highlights for the second half of 2019 and the first half of 2020.

As you will notice the second half of 2019 data reflects the last normal period before the COVID-19 crisis. In that normal period, the Arab air transport industry registered the following change rates as compared to the second half of 2018.

- AACO members total number of passengers transported in H2 2019 totaled 100.8 million passengers (international and domestic); a 3.2% year on year growth.

- AACO members total number of tonnes of cargo transported in H2 2019 totaled 3.2 million tonnes of cargo; a decrease of 6.4% over H2 2018. This decrease is mostly due to weak manufacturing activity at a global scale resulting from trade tensions.

- AACO members combined fleet totaled 1,399 aircraft in H2 2019 with an average age of 7.71 years.

- Arab airports handled 156 million passengers during H2 2019, increasing by 3.7% over H2 2018.

- Cargo transported at most Arab airports reached 3,989 thousand tons during H2 2019, a 1.9% decrease over H2 2018.

- Aircraft Movements at most Arab airports featured 1,084 thousand departures during H2 2019, increasing by 1.6% over H2 2018.

As for the situation during the first half of 2020, similar to what we witnessed in all regions of the world, AACO Members RPKs and ASKs witnessed a severe decline starting March 2020 and until May 2020 reflecting the lockdown measures as follows:

- AACO members' RPKs and ASKs are estimated to have shrunk by 54.8% and 48.3% in H1-2020 compared to H1-2019.

- AACO members' year-on-year monthly decline in seat capacity to/from the Arab world reached 75.0% and within the Arab world reached 77.1% in June 2020 compared to June 2019, which represents an improvement when compared to May 2020.

- In line with the decrease in demand, AACO members reduced the number of utilized aircraft to reach 782 in-service aircraft as on July 3, 2020, whereas the number of non-operated aircraft reached 712.

Enjoy your reading and we hope that by the next 3D Insight issue at the end of this year we will be publishing more positive results.

Best Regards,

Abdul Wahab Teffaha

AACO Secretary General