Middle Eastern Airlines Rebound in July: What This Growth Means for Investors and Business Opportunities in the Region
Demand for Air Travel Grows in the Middle East
Middle Eastern airlines recorded a 5.3% year-on-year increase in demand as recovery continued following disruptions caused by military conflicts in June. Capacity also witnessed a rise of 5.6%, resulting in a load factor of 84.1%.
According to the International Air Transport Association (IATA), data for July 2025 indicated that total demand, measured in revenue passenger kilometers (RPK), rose 4% compared to the same month in 2024. Total capacity, measured in available seat kilometers (ASK), increased by 4.4% year-on-year. The load factor for July was 85.5%, a slight decrease of 0.4 percentage points from July 2024, with international demand growing by 5.3%.
The international capacity saw a 5.8% increase year-on-year, while the load factor for international travel was 85.6%, also down 0.4 percentage points compared to the previous year.
Willie Walsh, IATA’s Director General, commented, “It’s been a good northern summer season for airlines. Momentum has grown over the peak season, with July demand reaching 4% growth. This trend is evident across all regions, especially for international travel, which improved from 3.9% growth in June to 5.3% in July. Additionally, with flight volumes showing a 2% year-on-year increase for September after five months of declining growth, airlines are well-positioned to capitalize on this market momentum in the coming months.”
Muscat International Airport has also experienced a significant uptick in transit passenger numbers during the first seven months of 2025. The National Centre for Statistics and Information (NCSI) reported a staggering 340.2% increase in transit passengers, bringing the total to 64,025 by the end of July, compared to 14,543 during the same period last year.
In total, Muscat International Airport handled 6,775,367 passengers this year, compared to 6,947,800 in the corresponding period of 2024. The number of domestic passengers using the airport rose from 621,955 in 2024 to 677,837 in 2025. Overall, the airport welcomed 7,453,204 passengers in the first seven months of 2025.
Special Analysis by Omanet | Navigate Oman’s Market
The 5.3% increase in demand for Middle Eastern carriers indicates a resilient recovery, presenting opportunities for businesses in Oman to capitalize on this rebounding air travel sector. However, the rising capacity could pose risks of over-saturation, necessitating strategic positioning to capture market share. Investors and entrepreneurs should consider enhancing service offerings and exploring partnerships with airlines to tap into the increasing number of transit and domestic passengers at Muscat International Airport.
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