Middle East airlines rebound with 5.3% passenger growth

Airlines in the Middle East recorded a 5.3% year-on-year increase in passenger demand in July 2025, signalling a rebound from the slowdown in June when traffic expanded by only 3.9% compared with the previous year. 

 

This bounce-back means the region is still on track to lead global airline profitability in 2025, with the highest net profit margin forecast among all regions.

 

The weaker growth in June was largely due to regional military conflict, which disrupted flight operations across key routes and forced the cancellation of more than 700 flights. 

 

That June disruption not only weighed on Middle Eastern demand but also limited the region’s contribution to global growth during that month, when total passenger traffic worldwide increased just 2.6% year-on-year.

 

By July, however, the region had regained momentum. Capacity, measured in available seat kilometers (ASK) — which gauges total available seats multiplied by distance — rose 5.6% year-on-year, while the load factor climbed to 84.1%, marking a sharp improvement from 78.7% in June and 80.9% in May.

 

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This recovery aligns with IATA’s June forecast that Middle Eastern carriers will be the most profitable globally in 2025, generating an estimated US$27.20 in net profit per passenger, more than three times the global average of around US$8.10.

 

Globally, passenger demand – measured in revenue passenger kilometres (RPK) – expanded by 4% in July compared to the previous year. International RPKs rose by 5.3%, up from 3.9% growth in June, reflecting a broad strengthening in travel activity during the Northern Hemisphere’s peak summer season.

 

Commenting on the figures, Willie Walsh, IATA’s Director General, said: “That trend appears across all regions and is particularly evident for international travel, which strengthened from 3.9% growth in June to 5.3% in July.

 

"Moreover, with flight volumes showing a 2% year-on-year increase for September after five months of decelerating growth, airlines are positioned to take advantage of this market momentum into the coming months.”

 

He added that the “severe disruptions” in the Middle East in late June highlighted how geopolitical instability continues to challenge airlines, even as carriers strive to maintain safe operations and minimise passenger inconvenience.

 

Regional performance varied. The Asia Pacific region led with 8.7% RPK growth in July, benefitting from continued international recovery and strong intra-Asia demand. North America, by contrast, posted the weakest increase at 2.4%, reflecting maturity in the domestic market and modest international expansion.

 

For context, Middle East airlines achieved robust full-year growth in 2024, with a 9.4% increase in traffic versus 2023.

 

For more information, visit www.iata.org