Low-Cost Carriers have become a powerful force in the Middle East
A new report by OAG, a leading travel data provider, titled “Middle East Skies: A New Era of Competition, Capacity, and Growth,” highlights a 5 pc growth in the Middle East’s aviation market since 2019. This growth, the second-fastest globally, is driven by a combination of expanding Low-Cost Carriers (LCCs) and increased capacity by legacy carriers.
In a press statement OAG says that this growth trajectory is not just impressive but also indicative of the seismic shifts occurring within the sector, fuelled by a mix of LCCs and resilient legacy airlines.
It adds that the Middle East has evolved from a region known for its strategic stopovers to one of the most competitive, dynamic, and rapidly expanding air travel markets globally.
According to OAG, one of the standout trends in the Middle East aviation sector is the remarkable rise of low-cost carriers. Over the past decade, LCCs in the region have more than doubled their market share. In 2014, low-cost carriers accounted for just 13 pc of the region’s total aviation capacity. By 2024, this share has surged to 29 pc, marking a structural shift in how the Middle East connects with the world.
The report says that this surge is largely driven by airlines like Saudi Arabia’s flynas and Dubai’s flydubai, which have experienced rapid growth in recent years.
It adds that flynas, for instance, saw a 63 pc increase in capacity in 2024 compared to 2019, making it the fastest-growing airline in the region. Not far behind, flydubai also reported a 56 pc growth, with both carriers operating nearly 14.4 million departing seats each in 2024.
The report adds that the Low-Cost Carriers have become a powerful force in the Middle East, offering travellers affordable and frequent flight options across the region and beyond. The average annual growth rate of LCC capacity in the Middle East stands at 11.5 pc, far outpacing traditional carriers.
It adds that this trend is reshaping not just regional travel but global aviation strategies, with the Middle East playing a pivotal role in offering accessible, flexible, and cost-effective travel solutions.
The statement adds that while low-cost carriers are growing rapidly, legacy airlines still hold a dominant position in the Middle East aviation landscape. Emirates, Qatar Airways, and Saudia Group remain among the top 20 global airlines by capacity.
It adds that in 2024, these three airlines collectively operated 127 million departing seats. Their extensive networks and premium service models allow them to maintain a stronghold in a competitive market.
OAG says that Emirates and Qatar Airways, in particular, continue to dominate with their expansive global reach, offering non-stop flights to nearly every continent.
It adds that the resilience of these carriers is particularly evident in their continued investment in innovation, fleet expansion, and premium services, which helps them retain their leadership position despite the rising influence of low-cost competitors.
It further adds that their large-scale operations and strong market presence make them central players in the Middle East’s aviation sector, even as they face increased competition from budget-friendly alternatives.
The report says that one of the region’s defining features is its heavy reliance on connecting traffic. Qatar Airways, for example, sees 84 pc of its passengers connecting through its Doha hub, while Etihad Airways and Emirates report similar figures. This focus on connectivity allows Middle Eastern airlines to provide a level of convenience and flexibility that is unmatched in many other parts of the world.
It adds that for travellers, this means more choices and shorter travel times, with the added benefit of direct connections to destinations worldwide.
The report adds that the competition in the Middle East aviation market is fierce, especially on key routes connecting major cities in the region. Popular corridors such as Cairo–Riyadh, Dubai–Riyadh, and Cairo–Jeddah are highly competitive, with multiple airlines vying for market share.
It adds that despite its overall growth, some countries in the region, such as Bahrain, Kuwait and Jordan, have experienced more modest expansion compared to their larger neighbours. However, the Middle East as a whole has seen a remarkable recovery since the pandemic, with international capacity growing by nearly 9 pc in 2024.
The report adds that this recovery is fuelled by the region’s expanding low-cost carrier network, which is helping to bring more travellers to Middle Eastern destinations, while also increasing connectivity to global markets.
According to statement Egypt plays a key role in the region’s aviation strategy, particularly in terms of Middle East–Africa routes. Airlines such as flyadeal and Air Arabia have concentrated their African operations heavily on Egypt, capitalising on the country’s strategic location and growing travel demand.
It adds that the rise of LCCs in the Middle East has also been particularly beneficial for African travellers, as it provides more affordable and frequent travel options to and from Egypt.
OAG says that the future of Middle East aviation looks bright. As the region continues to expand its low-cost carrier network and maintain strong ties to legacy carriers, it is positioning itself as a key player in the global aviation market.
It adds that Airports in Doha, Dubai, Abu Dhabi, Riyadh and Jeddah are investing heavily in infrastructure and technology to accommodate the growing demand for air travel.
The statement adds that these investments are aimed at improving passenger experience, streamlining operations, and increasing overall capacity to meet the needs of an expanding market.
It adds that in addition to infrastructure growth, the Middle East’s aviation sector is also embracing technological advancements, with airlines and airports alike working on innovations that enhance passenger convenience, reduce environmental impact, and improve operational efficiency.
According to statement the region’s focus on both low-cost and legacy carriers, combined with strategic investments in airport infrastructure, sets the stage for sustained growth in the years to come.
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