Overcapacity emerging as an issue in the Middle East

Airlines in the Middle East continue to add new aircraft and capacity ahead of demand, according to the latest traffic figures from industry association IATA. Oct-2011 international RPKs in the Middle East rose 7.7%, lagging behind a 9.5% increase in capacity.

The story is much the same for domestic markets in the Middle East, where capacity has risen 8.8%, ahead of demand growth of 8%.

The monthly figures also match the trend for the year to Oct-2011. RPKs have climbed 8.5% while ASKs are up 9.5%. This is still well down from the consistent double-digit levels seen in the past few years, when demand was generally well ahead of capacity growth. [1304 words]

CAPA Members Login Username: Password: Remember details

Instantly get access to this article now for USD15.00. or If you've already bought this article, you can view it by typing your Article Key:

This report contains the following subheadings:

• Airports and airlines feeling the strain of growth
• Profits to fall in 2012

This report contains the following charts and tables:

• Middle East passenger demand and capacity (RPKs and ASKs): Nov-2009 to Oct-2011
• Middle East freight capacity and demand (FTKs and AFTKs): Nov-2009 to Oct-2011
• Boeing and Airbus deliveries to Middle East customers: 2011
• Middle East regional airline profits: 2004 to 2012