Middle Eastern airlines saw a 14.2% year-on-year decrease in passenger demand as capacity fell 9% year-on-year, and the load factor was 79.1%.As per the International Air Transport Association (IATA) released data for August 2026, "The decline in traffic worsened in August, reversing the trend of gradual stabilization since the Iran war in February. The year-on-year contraction on Middle East-Asia routes accelerated to -11.7% from -8.6% in July."
The Muscat International Airport saw a decrease of 7.9% in flights movement and 8.7% in passenger traffic during the same period.
“Global demand for air transport contracted by 0.8% compared to August 2025 as the recovery trajectory for carriers in the Middle East was interrupted. The region’s carriers reported that demand was 14.6% lower year-on-year, reversing an improving trend. Excluding the Middle East carriers, demand for air travel grew by 0.6% year-on-year in August, half the pace seen in July. With some important exceptions such as domestic China, global connectivity was generally weaker in August. The coming months will reveal whether travelers, whose purchasing power has been reduced by higher energy prices, are adjusting their travel budgets, and might be discouraged from traveling due to the prevailing geopolitical instability. In the meantime, forward schedules for October are showing cautious optimism with 2.0% growth in available seats,” said Marie Owens Thomsen, IATA’s senior vice president sustainability, and chief economist.
At the same time, Middle Eastern airlines saw a 1% year-on-year increase in demand for air cargo in August, the weakest of all regions. Capacity increased by 3.3% year-on-year.
Total demand, measured in cargo tonne-kilometers (CTK), increased by 4.4% compared to August 2025 (+5.3% for international operations).
Capacity, measured in available cargo tonne-kilometers (ACTK), decreased by 0.1% compared to August 2025 (+0.1% for international operations).
“Air cargo demand rose 4.4% year-on-year in August with all regions reporting growth even as capacity was trimmed by 0.1%. Strong demand and higher load factors helped airlines to recoup some of the exceptionally high fuel costs. Yields rose month-on-month for the first time since April, while global goods trade growth continues. Both are positive signs as the year-end peak season comes into view,” said Marie Owens Thomsen, IATA’s Senior Vice President Sustainability and Chief Economist. Several factors in the operating environment should be noted:
Global trade increased by 6% year-on-year in July, extending the run of consecutive monthly expansions to 33 months, on a year-on-year basis.
Jet fuel prices rose by 8.3% month-on-month in August and were 79.2% higher than a year earlier.
Air cargo performance diverged across major trade lanes in August. Asia–North America recorded the strongest growth, followed by within Asia, Europe–North America, and Europe–Asia. In contrast, Gulf-linked corridors remained disrupted by the conflict in the Middle East.
Oman Observer is now on the WhatsApp channel. Click here
