Middle Eastern Airlines See Cargo Growth as Gulf Passenger Traffic Recovers

Air cargo demand among Middle Eastern airlines rose 1.7 percent year on year in July, while the decline in international passenger traffic eased to 9.5 percent as activity through major Gulf aviation hubs continued to recover, according to industry data.

The International Air Transport Association said international passenger capacity among airlines in the region fell 5.8 percent from a year earlier. The passenger load factor dropped 3.3 percentage points to 80.9 percent.

When domestic and international operations are combined, Middle Eastern airlines recorded a 10 percent decline in passenger demand during July. Capacity was down 6.2 percent, while the overall load factor fell 3.4 percentage points to 80.7 percent.

The regional downturn continued to weigh on global figures. Worldwide passenger demand increased by only 0.2 percent in July when measured in revenue passenger-kilometers. Without the Middle East, global demand would have increased by 1.2 percent.

International passenger demand fell 0.1 percent globally, but would have recorded 1.5 percent growth if the Middle Eastern market were excluded.

“Notably, traffic through the Gulf hubs continues its recovery trajectory,” said Marie Owens Thomsen, IATA’s senior vice president for sustainability and chief economist.

She said airlines remained confident about demand toward the end of the year despite high fuel costs, economic uncertainty and geopolitical tensions. Carriers are planning to increase seat capacity by almost 3 percent in September.

Cargo routes remain under pressure

Middle Eastern air cargo capacity increased 4 percent in July compared with the same month last year, exceeding the 1.7 percent rise in demand. The increase in available capacity pushed the region’s cargo load factor down one percentage point to 44.1 percent.

The Middle East represented 13.2 percent of global air cargo traffic in 2025, making it the world’s fourth-largest cargo market after Asia-Pacific, North America and Europe.

Major cargo routes linked to the Gulf continued to face pressure from the regional conflict. Traffic between Europe and the Middle East fell 16.1 percent in July, while the Middle East-Asia corridor declined 14.1 percent. Both routes recorded their fifth consecutive month of contraction.

Globally, air cargo demand increased 3.9 percent in July, with international demand rising 4.7 percent. Worldwide cargo capacity grew 1.7 percent, while international capacity increased 1.8 percent.

Higher fuel costs are adding to pressure on airlines. Jet fuel prices rose 12.2 percent from June and were 56.9 percent higher than a year earlier. Global trade, meanwhile, increased 7.5 percent year on year.

Saudi Arabia has continued expanding its aviation sector despite regional disruption. The General Authority of Civil Aviation said the Kingdom’s airports handled more than 140 million passengers in 2025, up about 9 percent, while international connectivity reached 176 destinations.

The authority also said contingency measures allowed Saudi airports to receive more than 2,000 flights from neighboring carriers between February 28 and May 3. Those flights carried more than 258,000 passengers.

Saudi Arabia’s aviation strategy targets 330 million annual passengers, more than 250 destinations and annual air cargo volumes of 4.5 million tonnes by 2030.