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FEATURE XXXXXXXXX XXXX
REGIONAL AIRLINES
TURE
FEA

Level Flight

After a period of breathless expansion, 2017 will be a year of consolidation for airlines in the
Middle-East
By Atul Chandra
IT IS HARd TO IMAGINE NOW THAT ETIHAd in, out of and within the region every year
Airlines is less than 14 years old, Qatar by 2035. The United Arab Emirates (UAE),
Airways is celebrating its 20th year of Qatar and Saudi Arabia will all enjoy strong
operations in 2017 and Emirates Airlines has passenger growth of 5.9 percent, 4.7 percent,
completed 30 years. Within this short span and 4.1 percent respectively. The total market
of time, the three carriers have shaken up size will be 414 million passengers by 2035.
the cosy hierarchy of legacy transcontinental In terms of profits, Middle Eastern
carriers and built powerhouse airline brands. airlines are forecast by IATA to generate a
2017 however, will be a year in which all these net profit of only 300 million in FY 2017 at
airlines will seek to consolidate their market a net margin of a measly 0.5 percent. This
position. According to a recent International works out to an average profit per passenger
Air Transport Association (IATA) forecast; of US$1.56, far below that of U.S. based
passenger traffic in the Middle-East will carriers. This implies a dramatic decrease in
continue to increase at an average of 4.8 profits as compared to the US$900 million
percent over the next 20 years. This will add profit that was forecast by IATA for FY 2016.
an additional 244 million passengers flying Thankfully for the airlines in the region, while
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