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Kamel Al-Awadhi, Regional Vice President Africa and the Middle East at IATA
Kamel Al-Awadhi, Regional Vice President Africa and the Middle East at the International Air Transport Association (IATA) expects significant growth in Saudi Arabia’s aviation sector during the next five years, marked by an increase in the number of destinations, fleet size, and airport infrastructure.
The Kingdom is expected to witness a clear renaissance in the aviation sector during 2024, with growth rates expected to surpass those in 2023, he told Argaam on the sidelines of the Future Aviation Forum.
This growth is attributed to the solidarity and cooperation among the concerned parties.
He expected the number of destinations in the Gulf region to increase from 50 to 100 in within the next five years and slight decrease in ticket prices would attract more passengers.
The Suez Canal and the Red Sea crisis boosted demand for regional air freight during the first quarter of 2024.
Airlines are working to optimize cargo capacity alongside passenger numbers to raise freight levels seen during the COVID-19 pandemic, he added.
He pointed out that the aviation sector’s return to profitability in the Gulf region in 2023 was due to collaboration between airlines, airports, and ministries, as well as the retention of employees during the pandemic, which enabled swift post-pandemic recovery.
On the other hand, Al-Awadhi highlighted that fluctuating fuel prices and geopolitical events are challenges and can threaten the profits of airlines.
Geopolitical events often necessitate route change, increasing fuel consumption and costs.
Supply chain disruptions have made it difficult for airlines to obtain spare parts promptly, leading to prolonged aircraft groundings and impacting profitability, Al-Awadhi added.
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