Middle East air traffic rises amid global downturn

TRAFFIC WARNING: The Middle East posted a small growth in air traffic in October but IATA chief says the worst is yet to come. (Getty Images)

The Middle East region was one of only two in the world to record an increase in air traffic in October, according to latest figures released by The International Air Transport Association (IATA) on Thursday.

The region's airlines saw a 3.5 percent growth in traffic compared to the same month in 2007 and alongside Latin American carriers (up 4.5 percent) were the only positives in a report full of negatives.

But while better than the September traffic figures, both regions remain well below the double-digit growth rates experienced over the first half of the year.

Economic forecasts for both regions see considerable slowing of GDP growth over the next 12 months to the two to four percent range and the IATA said airlines in both regions can expect a continued slowing of growth.

The Middle East fared better than most in the October figures which showed a second consecutive month of global decline.

International passenger traffic declined by 1.3 percent compared to the same month in the previous year - a smaller decline than the 2.9 percent drop experienced in September.

The October load factor was 75 percent, approximately two percent below the previous year's levels.

Meanwhile, international air freight traffic contracted by 7.9 percent in October - the fifth consecutive month of increasingly severe drops.

Giovanni Bisignani, IATA’s director general and CEO, said: “The gloom continues and the situation of the industry remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability.

"The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come."

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READERS' COMMENTS

Ex-pats going home?
Posted by Marvin, Dubai, UAE on Saturday 29 November 2008 at 10:43 UAE time


In the short term, ticket sales (one way) will keep the figures up.

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