Research and Intelligence
Airlines – Middle East | August 27, 2024 | Page 1
REPORT: AIRLINES: MIDDLE EAST
What you need to know
August 2024
This report presents a roundup of what’s been happening to airlines in the Middle East over the last month.
Major carriers
Etihad Airways
First half operating profits in 17% fall
Abu Dhabi-based Etihad Airways posted a 21% rise in first half revenue to $3.2 billion, driven by a 24%
increase in passenger revenue, as passenger numbers rose by 38% to 8.7 million. While the airline’s
operating profit fell by 17% to $278 million, its net profit improved by 48% to $232 million.
Nairobi flights resuming
Etihad will resume flights from Abu Dhabi to Nairobi from December 15. It will fly the route with four
weekly flights.
A380 deploying to Singapore
Singapore will join London, New York JFK and Paris (from November) as the fourth destination with Airbus
A380 Etihad services, when the carrier deploys the type from February 1, 2025. Elsewhere in Asia, Etihad
plans to offer three daily flights to Bangkok and 20 per week to Phuket from October 27.
Qatar Airways
Stake taken in Airlink
Qatar Airways has secured a minority 25% stake in South African regional carrier Airlink. This is consistent
with the airline’s ambitions to develop its operations across Africa.
Extra Heathrow services
Using slots acquired from Tarom, Qatar Airways will add an eighth daily flight between Doha and London
Heathrow from October 27.
Maldivian interline agreed
Qatar Airways has signed an interline agreement with Maldivian, the national carrier of the Maldives. It will
allow passengers to book a combination of Qatar Airways and Maldivian flights on a single ticket. Qatar
Airways’ passengers will gain access to 17 domestic destinations in the Maldives, including Dharavandhoo,
Fuvahmulah and Thimarafushi.
Saudia
Second point in Indonesia joining network
Saudia will add Medan as its second Indonesian destination after Jakarta when it launches four-times
weekly services from Median on August 31.
Airlines – Middle East | August 27, 2024 | Page 2
Turkish Airlines
Q2 operating profit holds steady
Turkish Airlines saw its second quarter revenue rise by 10% to $5.66 billion. Passenger revenues rose by
4.2%. The airline was able to post a slight rise in operating profit from $1.03 billion to $1.05 billion. Its net
profit did much better, increasing by almost 50% from $635 million to $943 million.
The airline has warned that increased competition placed pressure on its second quarter yields. Together
with signs of demand moderating, this could force Turkish to cut capacity growth towards the end of 2024.
Low-cost carriers
Air Arabia
Q2 profits dip despite stronger revenue
UAE-based Air Arabia increased second quarter turnover by 19% to Dh1.65 billion, with passenger
numbers also rising by 19% to 4.5 million. The airline also managed to lift its load factor by three
percentage points to 79%. Despite these improvements, Air Arabia posted a 7% decline in net profit to
Dh427 million (US$116 million).
Flydubai
New Swiss route launched
Flydubai has launched a new four-times weekly service from Dubai to Basel. Emirates will codeshare on
this new service.
Flynas
Fleet and long-haul expansion planned
Saudi low-cost carrier Flynas currently operates a fleet of 66 aircraft, comprising 57 Airbus A320s and nine
A330s. It has a further 67 A320neos and 10 A321neos on order. Its growth aspirations don’t end there. It
has now agreed a memorandum of understanding with Airbus for 75 more A320neos and 15 A330-900s.
The latter will enhance Flynas’s long-haul potential.
Pegasus
New Spanish route announced
Turkish carrier Pegasus will launch a thrice-weekly service from Istanbul to Seville from September 24.
Other airlines
Air Astana
First half profits rise, but margins slip
During the first half of 2024, Kazakh carrier Air Astana increased it fleet from 44 to 54 aircraft, supporting
15% growth in passenger numbers to just over 4 million. Following a 0.7-point dip in load factor to 82%, its
operating margin (EBITDAR) eased from 24.3% to 23.7%, even though its operating profit improved from
$126 million to $139 million.
Airlines – Middle East | August 27, 2024 | Page 3
Two Southeast Asian destinations joining network
Air Astana will start thrice-weekly non-stop services from Astana to Phuket from October 26. At the same
time, frequency on existing Almaty-Phuket services will increase from five per week to daily. Two days later,
Air Astana will launch a second new route to Southeast Asia with the start of twice-weekly flights from
Almaty to Phu Quoc, Vietnam. Frequency on this route will increase to four per week from December.
Japan Airlines codeshare agreed
Air Astana has signed a codeshare agreement with Japan Airlines (JAL). It covers Air Astana’s domestic
flights, including services from Almaty to Astana and Atyrau. It will also include Air Astana’s flights between
Almaty and Tokyo, which it plans to launch in spring 2026. JAL’s services from Tokyo to Fukuoka, Nagoya,
Okinawa, Osaka and Sapporo are also part of the arrangement.
Air Haifa
Start-up receives first aircraft
Israeli start-up Air Haifa has taken delivery of its first aircraft. The arrival of the first of two ATR 72-600s will
enable the airline to start operations in September, subject to final approval from the Civil Aviation
Authority of Israel. Air Haifa plans to fly from Haifa International airport in northern Israel to destinations
around the Mediterranean and Red Sea, including to Eilat and Cyprus.
El Al
Second quarter profit more than doubles
Israeli carrier El Al lifted second quarter revenue by a third year-over-year to $839 million. During the
three-month period, it increased capacity by 8% and lifted its load factor by nearly six-points to 92%. The
airline manged to improve its net profit to $147 million, from $59 million last year.
Oman Air
Three routes reinstated for winter
Oman Air has reinstated three routes in its winter schedule. From October 5, it will resume service from
Muscat to Zurich, with flights to Male and Moscow following on October 27 and 29, respectively.
The information presented in this report represents the latest view as at August 27, 2024. We have carefully researched and checked
the information contained. However, we do not guarantee or warrant the correctness, completeness or topicality of this article and do
not accept any liability for any damage or loss as a result of the use of the information contained within this article.
If you have any questions or comments regarding this report, please email mike.eggleton@bcdtravel.co.uk to share your thoughts.
