Mideast air traffic up 25.9% despite ash crisis

The Middle Eastern carriers recorded the strongest traffic growth at 25.9 per cent for the month of March compared to March 2009, even as other regions suffered heavily due to the volcanic ash crisis, according to the latest findings by the International Air Transport Association (Iata).

"While economic growth of five per cent in the Middle East is supporting some of this increase, a large part is attributed to market share gains on long-haul markets, connecting passengers over Middle Eastern hubs," the Iata statement pointed out, adding that load factors for the region's airlines rested at 76.2 per cent – slightly "below the global average".

European airlines, meanwhile, are likely to be the hardest hit by a plunge in the recovery in global air travel caused by the Iceland volcanic ash shutdown, the Geneva-based aviation trade body said. "The majority of the $1.7 billion (Dh6.24bn) in lost revenues was by Europe's carriers," said Giovanni Bisignani, Iata's Director-General and CEO. "Passenger confidence is not affected and we expect a quick rebound. The combined impact of lost business and added costs will certainly hit the bottom line."

Overall, however, the March 2010 international scheduled air traffic showed continued strengthening of demand over the same period last year, with passenger demand up 10.3 per cent, an improvement over the nine per cent passenger traffic growth in February 2010.

"March results show that the pace of the upturn is strong. But the trauma of the recession is not over. The industry has lost two years of growth, and passenger and freight markets are still one per cent below early 2008 highs. Nonetheless, the pace of improvement, based on an improving global economic situation, is much faster than anybody would have expected even six months ago," said Bisignani.