IATA: Saudi Arabia is among the 10 largest aviation markets in the world
The International Air Transport Association (IATA) revealed that Saudi Arabia is among the 10 largest markets Aviationin the world, with a contribution to the gross domestic product amounting to $90.6 billion.
According to the annual report of"IATA"The growth witnessed by the aviation sector in the Middle East region reflects the progress made in efforts to diversify national economies, including Aviationin the Middle East achieved net profits estimated at approximately $7.2 billion during the year 2025, recording the highest profit margins among all regions of the world.
He pointed out that these strong results, which equate to a net profit margin of 9.4%, were supported by the strength of the operations of the air connection centers, the high percentage of passengers in premium classes, and the decline in fuel costs, in addition to the continued expansion of air transport networks.
He said "IATA"The strong profitability of airlines in the Middle East, coupled with high levels of liquidity and low debt compared to all other regions, is based on a supportive regulatory and infrastructure environment for the sector.
He added "IATA"Middle East travelers prefer airports with a strong reputation for quality services and distinguished airlines, and they also enjoy high levels of digital interaction, with the spread of the use of e-wallets and the increasing demand for digital travel documents via smartphones.
Cargo Market
The Middle East also plays a pivotal role in the global air freight market, as it accounts for about 13% of global freight traffic, although its share of passenger traffic is less than that.
The report indicated that the turmoil that the region witnessed at the beginning of the year 2026 significantly affected global air cargo flows.
Despite these challenges, the Union maintained its positive long-term outlook, expecting global demand for air travel to exceed double its current levels by 2050, according to the basic scenario that assumes a compound annual growth of 3.1% during the period from 2024 to 2050.
Global Aviation
At the global level, airlines achieved record net profits amounting to $45 billion. During 2025, driven by the transport of about 5 billion passengers and the shipment of 71.5 million tons of cargo.
However, the average global net profit margin remained limited at only 4.2%. The report indicated that the expected strong performance in 2026 was subject to pressure as a result of the oil price shock related to the tensions in the Middle East, which is expected to negatively affect profits and profit margins during the current year.
Improving Profitability Levels
Willie Walsh, Director General of the International Air Transport Association, said that airlines succeeded in improving profitability levels during 2025, but profit margins are still relatively limited.
He added that the rise in fuel prices resulting from conflicts in the Middle East It will affect corporate profits in the short term, while supply chain bottlenecks and requirements to reach carbon neutrality by 2050 remain among the most prominent long-term challenges.
According to the report, North America lost its position as the most profitable region in the world in absolute terms, as airline profits there reached $12.4 billion during 2025, with a profit margin of 3.5%.
On the other hand, Europe topped the global regions in terms of total profits, after recording European airlines net profits amounted to $13 billion, with a profit margin of 4.5%.
Latin America achieved a noticeable improvement, recording net profits of $1.9 billion and a profit margin of 3.8%, compared to only 0.4% in 2024.
- For more: Follow Khaleejion 24 Arabic, Khaleejion 24 English, Khaleejion 24 Live, and for social media follow us on Facebook and Twitter
