1. Strong profitability in 2025 for Middle East carriers a. According to IATA, airlines in the Middle East are expected to achieve a net profit margin of around 8.7% in 2025. b. Projected profit per passenger is about US$27.20, which is more than three times the global average (~US$7‑8). c. Total net profits for the region are forecast at US$6.2 billion in 2025, slightly up from 2024. 2. Capacity expansion & new routes a. Etihad Airways is adding several new destinations in the Gulf, Europe, the Caucasus and Central Asia. Destinations include Almaty (Kazakhstan), Baku (Azerbaijan), Bucharest (Romania), Tbilisi (Georgia), Tashkent (Uzbekistan), Yerevan (Armenia), and Madinah (Saudi Arabia). Some of these start in late 2025 or early 2026. b. Saudia is expanding its European footprint — seasonal flights to Vienna and Athens, several new destinations planned to include Venice, Nice, Malaga, Bali. c. Fly Nas (Saudi Arabia’s low‑cost carrier) is adding African destinations like Uganda and Djibouti, under a broader plan to boost international connectivity. 3. Operational challenges and fleet/retrofit constraints a. Many carriers face delays in aircraft delivery, and large‑scale retrofit programs are underway. These are expected to constrain capacity expansion somewhat. b. Also, environmental / hot climate operational issues are increasingly relevant (e.g., effects on engine performance, etc.). 4. Low‑cost / budget carriers are growing a. Air Arabia had a strong Q1 in 2025: net profit up ~34% YoY, passenger numbers up ~11%, seat load factor ~84%. b. Lebanon’s MEA is exploring launching a low‑cost wing. Also ordering aircraft (including extra‑long‑range A321XLR), aiming to open new markets in Africa. 5. Strategic & fleet investment a. Turkish Airlines placed a large order for Boeing aircraft: 75 B787‑9/10s and ~150 737‑8/10MAX (some firm, some options) for delivery between 2029‑2034. b. Airlines are also increasingly focusing on premium narrow‑body aircraft and longer‑range narrow body planes (like A321LR / XLR) to serve medium‑haul routes with comfort. 6. Partnerships / cooperation a. Turkish Airlines & Gulf Air signed an MoU to deepen cooperation: potential joint ventures, sharing ground handling, loyalty programs etc. b. Qatar Airways expanded its Australian connections, increased frequencies on several global routes. Also enhancing in‑flight connectivity (e.g. Starlink WiFi rollout) etc.
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