The global aviation industry is facing major challenges, including delays in aircraft deliveries and supply chain issues, which are affecting revenues and costs.
However, the Middle East stands out as a success, with airlines in the region achieving strong financial results in 2024.
This success is driven by significant investments in infrastructure and supportive government policies.
While global airlines are under increasing pressure, Gulf carriers continue to strengthen their market position, benefiting from the region’s economic and geopolitical opportunities.
The Middle East has posted the highest financial performance in 2024, with airlines recording a net profit of $23.1 per passenger. This figure is expected to grow by 8.2%, reaching $23.9 next year.
The Middle East has gained from significant investments in infrastructure and supportive government policies, making it the only region to see an increase in passenger revenue in 2024, driven by strong long-term performance.
Despite the ongoing Gaza conflict, Gulf airlines have largely remained unaffected. However, their growth targets for 2025 could be impacted by supply chain issues, including aircraft delivery delays and limited engine availability, according to the International Air Transport Association (IATA).
The higher net contribution per passenger from the Middle East shows these airlines have not been heavily affected by regional disruptions, IATA Director General William Walsh told Asharq Al-Awsat.
While some airlines face challenges, others are performing well.
Walsh explained that the region’s focus on net profit per passenger is due to its global hubs attracting premium passengers and benefiting from strong cargo revenues.
Saudi airlines are benefiting from air cargo despite geopolitical issues.
Walsh also noted that the closure of Russian airspace may have helped the region, with more passengers routing through major hubs like Dubai, Abu Dhabi, and Doha instead of flying directly from Europe.
Reduced direct flights between the US and China have also boosted these hubs with traffic from America to China.
However, some airlines in the region, lacking major hubs, have been more impacted by the Gaza conflict and are unable to benefit as much from regional traffic flows.
