Airlines in the Middle East region have benefited from strong growth in business-related premium travel throughout the year, particularly to Africa and other developing markets

By Santhosh V Perumal/Business Reporter


Middle Eastern airlines exhibited the strongest year-on-year demand growth at 9.7% in November against the global average of 4.8%, according to International Air Transport Association (Iata) figures.
Their growth compares vis-à-vis 6.9% by Latin American carriers, 5.5% by Asia-Pacific, 4.1% by European and 1.7% by North American; while Africa saw a 2% fall.
Airlines in the Middle East region have benefited from strong growth in business-related premium travel throughout the year, particularly to Africa and other developing markets, Iata said in a report.
Capacity rose 12.8% and load factor slipped two percentage points to 72.1%, it added.
In contrast, international passenger demand in November 2013 rose 4.8% compared to the year-ago period.
Capacity rose 6.3% versus November 2012 and load factor dipped 1 percentage points to 75.5%.
All regions except Africa recorded year-over-year increases in demand. However, compared to October, all regions reported slower demand growth for November, Iata said.
In November, capacity expanded by 6.1% which outpaced demand growth. This led to a 1.4 percentage point slip in the load factor to 76.3%.
“Demand growth hit a speed bump in November. But with continued modest improvements in economic conditions,” according to Tony Tyler, Iata director general and CEO.
Asia-Pacific carriers saw an increase in demand of 5.5% compared to November 2012, supported by the stronger performance of major economies such as China and Japan.
With capacity up 6.8% on the previous year, the load factor slipped 0.9 percentage points to 75.4%, Iata added.
European carriers’ demand for international services rose 4.1% in November 2013 compared to the year-ago period. Capacity expanded more quickly at 4.8%, leading to a 0.5 percentage point dip in the load factor to 77%. Modest economic improvements and rising consumer and business confidence are supporting the growth in demand.
North American airlines saw demand rise 1.7% over the 2012 period. This was a slowdown on October growth, which was 3.6%. Capacity rose 4.7%, causing load factor to fall 2.2 percentage points to 77.5%.
Recent economic indicators pointed to a solid fourth quarter, despite disruption of the US government shutdown in October.
Latin American airlines experienced a 6.9% rise in demand in November, the second strongest growth recorded.
Robust expansion in business related travel is being driven by strong performance of economies such as Colombia, Peru and Chile. Capacity rose 3.6% and load factor climbed 2.4 percentage points to 79.4%, the highest for any region.
Africa was the only region to see a decline in demand: November traffic fell 2% compared to the same month in 2012. Capacity climbed 2.6%, pushing load factor down 3 percentage points to 63.5%, by far the lowest for any region.
Volatility in the air transport statistics rather than the start of a downward trend may have contributed to the lower number, as the demand environment is strong, Iata said.