Middle East Aviation Market Surges Ahead as Second-Fastest Growing Region Globally
The Middle East aviation sector is experiencing a remarkable phase of expansion, emerging as the world’s second-fastest growing region for air travel, according to a new report by leading travel data analytics firm OAG. The report, titled “Middle East Skies: A New Era of Competition, Capacity and Growth,” presents a detailed analysis of capacity trends, airline competition, and market dynamics shaping the region’s aviation industry in 2024.
According to the findings, the Middle East has seen a 5% increase in airline capacity since 2019, outpaced only by South Asia, which posted a 12% surge. This notable growth trajectory underscores the Middle East’s continued evolution as a global aviation powerhouse. Driving this upward momentum is a dynamic blend of low-cost carrier (LCC) expansion and increased seat capacity by established full-service airlines, including global giants such as Emirates and Qatar Airways.
Legacy Carriers Hold Strong
Despite the growing prominence of LCCs, the region’s traditional full-service airlines continue to maintain a dominant presence. Emirates and Qatar Airways, two of the Middle East’s aviation heavyweights, are ranked among the 2024 Top 20 Global Airlines by Capacity and also secure spots in the Top 10 by Available Seat Kilometers (ASK), a key industry metric for assessing airline productivity.
On a group level, Emirates Group, Saudia Group, and Qatar Airways are the top three airline conglomerates in the region, operating a combined total of 127 million departing seats in 2024. These figures reinforce the strategic significance of hub airports in Dubai, Doha, and Jeddah, which serve as major transit points connecting Europe, Asia, and Africa.
Low-Cost Carriers Power the Next Wave of Growth
While legacy carriers continue to anchor the region’s air connectivity, it is the aggressive rise of LCCs that is redefining the market landscape. The most striking example is flynas, which has emerged as the fastest-growing airline in the region, recording an impressive 63% increase in capacity in 2024 compared to pre-pandemic levels in 2019. Closely trailing flynas is flydubai, which posted a 56% capacity jump over the same period. Both carriers now operate nearly 14.4 million departing seats annually, with flynas narrowly edging out flydubai by about 25,000 seats.
This rapid growth reflects broader market trends. LCCs now account for 29% of total seat capacity in the Middle East, more than doubling their share from 13% in 2014. Over the past decade, LCC capacity in the region has expanded at a compound annual growth rate (CAGR) of 11.5%, significantly outpacing the growth rate of full-service carriers. The success of these low-cost operators is attributed to a combination of strategic route planning, competitive pricing models, and a growing demand for affordable travel across both regional and long-haul routes.
Egypt: The Nexus of African LCC Connectivity
A significant share of LCC growth has been directed toward African routes, with Egypt emerging as a key market. OAG’s data reveals that a substantial proportion of the region’s LCC capacity to Africa is focused on Egyptian destinations. Notably:
- 96% of flyadeal’s African capacity is allocated to Egypt
- 81% of flynas’s African capacity is directed toward Egypt
- 73% of Air Arabia’s capacity linking the Middle East and Africa also targets Egyptian cities
These numbers highlight Egypt’s pivotal role in connecting the Middle East with the broader African continent, especially for value-oriented travelers and budget-conscious tourism segments. The high demand for air travel between Egypt and Gulf countries is also fueled by strong expatriate communities, robust trade ties, and growing religious tourism.
Full-Service Airlines Lean on Connecting Traffic
In contrast to the point-to-point models favored by LCCs, the region’s full-service carriers continue to capitalize on their strategic geographic positioning to serve as connecting hubs. Airports in Dubai, Doha, and Abu Dhabi act as vital gateways for long-haul passengers traveling between Europe, Asia, Africa, and the Americas.
OAG’s report reveals the extent to which these carriers depend on connecting traffic:
- 84% of Qatar Airways passengers transit through Hamad International Airport in Doha
- 77% of Etihad’s passengers connect through Abu Dhabi
- 66% of Emirates passengers utilize Dubai as a transfer hub
These figures underscore the importance of network connectivity and hub efficiency for the success of legacy carriers in the region. Investments in airport infrastructure, streamlined customs processes, and high-frequency scheduling continue to support the hub-and-spoke model that has long been the cornerstone of the Middle East’s aviation strategy.
Competitive Hotspots Intensify
Competition across the Middle East’s major air corridors has intensified significantly. The route between Cairo and Riyadh (CAI–RUH) stands out as one of the most fiercely contested, with no fewer than eight carriers operating in this corridor. Similarly, Dubai–Riyadh (DXB–RUH) and Cairo–Jeddah (CAI–JED) routes also witness high levels of airline competition, driven by business travel, diaspora movement, and religious pilgrimages.
However, not all routes exhibit such fragmentation. For example, the Dubai to London Heathrow (DXB–LHR) route remains a more concentrated market, with just four airlines competing. This contrast illustrates the varying degrees of competition depending on regulatory access, slot availability, and bilateral agreements.
Industry Outlook: A Region Poised for Transformation
Commenting on the findings, Filip Filipov, Chief Operating Officer at OAG, emphasized the region’s growing importance in the global aviation ecosystem. “The Middle East region’s strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities,” he stated. “This vibrant market is setting the stage for future advancements in aviation technology and passenger experience, and at OAG, we are thrilled to support this evolution.”
Indeed, the future of Middle East aviation looks promising, with major investments underway in airport expansions, next-generation aircraft acquisitions, and digital transformation initiatives aimed at enhancing passenger experience and operational efficiency.
Saudi Arabia’s Vision 2030 is one such initiative that has placed aviation front and center. The kingdom is not only expanding existing airports such as King Abdulaziz International Airport in Jeddah and King Khalid International Airport in Riyadh but also planning the construction of a new mega-airport in Riyadh that will serve as a hub for the soon-to-be-launched Riyadh Air.
Similarly, the United Arab Emirates and Qatar continue to invest heavily in aviation and tourism infrastructure to attract transit passengers, business travelers, and tourists. These efforts are expected to further boost capacity and solidify the region’s status as a vital bridge between continents.
About OAG
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