UAE: More people opt for budget travel amid rapid growth of low-cost carriers in Middle East
Budget travel is increasingly gaining popularity in the UAE and other Middle East countries as the market share of low-cost carriers (LCCs) in the Middle East has more than doubled in the last decade.
From just 13 per cent in 2014, budget carriers rose to 29 per cent of capacity in the Middle East in 2024, according to a study released by global aviation consultancy OAG.
'As expected, the majority of each of the main LCC's capacity is focused on operating within the Middle East region, but as each carrier has evolved, so too have their networks and Africa represents an important market,' said OAG.
A large population of budget-conscious travellers from Asia and Africa in the Gulf Cooperation Council (GCC) is driving the demand for low-cost travel in the region. Among the other non-GCC countries, budget travel is popular due to the low per capita income of those countries.
The six-nation GCC bloc's population reached 63.7 million and a large chunk of the population is foreign nationals, especially in Saudi Arabia, the UAE and Qatar.
In addition, UAE and other regional countries have seen launches of many new budget airlines such as Air Arabia Abu Dhabi, Wizz Air, flynas and SalamAir.
Both flydubai and Air Arabia have a larger share of capacity operating in Asia, predominantly operating to the Indian subcontinent which serves the sizeable blue-collar worker market that exists between the Indian subcontinent and the Middle East. By comparison, globally, LCCs operated at 34 per cent of capacity in 2024.
The Middle East LCC market in 2024 has eight main players. Flydubai and flynas are the largest, both with almost a quarter of LCC capacity each. The other major airlines are Air Arabia, flyadeal, Jazeera Airways, Salam Air, Wizz Air Abu Dhabi and Air Arabia Abu Dhabi.
Importantly, LCC's capacity has grown at a much faster rate than mainline capacity, increasing by an average of 11.5 per cent year on year in the last decade, compared to a mainline growth rate of just 1.4 per cent each year over the same time period.
The UAE and other regional airlines – both budget and full-fledged – have recorded strong growth over the past couple of years, leading to an increase in profitability and job creation.
According to OAG, the Middle East is the sixth largest region in the world based on available capacity, with 270 million one-way seats in 2024 placing the region ahead of Eastern Europe and behind South Asia.
As of 2024, only two Middle Eastern carriers, Dubai's flagship carrier Emirates and Qatar Airways, have featured in 2024's Top 20 Global Airlines for Capacity and the Top 10 Global Airlines by available seat kilometres (ASKs).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
an hour ago
- The National
Madagascar looks to deepen investment ties with the UAE, says country's top diplomat
Madagascar is seeking to deepen investment co-operation and strengthen ties with the UAE, the country's top diplomat said during a visit as part of a high-level delegation to take part in a two-day business forum. The Madagascar Business Forum was held in Dubai this week. It brought together more than 60 Malagasy business owners and entrepreneurs to connect with Emirati counterparts. 'This forum is part of our efforts to reinforce both economic and diplomatic ties between our two nations,' Madagascar's Foreign Minister, Rafaravavitafika Rasata, told The National. 'These two days are dedicated to expanding our economic partnership with the UAE.' Over the past nine years, Madagascar and the UAE have cultivated a growing relationship marked by strategic co-operation across various sectors, including infrastructure development, humanitarian aid, economic investment and digital innovation. Madagascar views the Emirates as a strategic partner for economic recovery and development, while the UAE sees the island nation as a gateway to African markets and a partner in advancing sustainable development initiatives in the Indian Ocean region. Emirates Airline launched direct flights from Dubai to Antananarivo last year and increased its services from four weekly flights to six as of April, responding to demand for both passenger and cargo transport. 'This demonstrates growing confidence in our market,' said Ms Rasata. 'It is a huge opportunity to position Madagascar not only as a tourist destination but also as a land of opportunity for investors.' Untapped potential Situated in the western Indian Ocean, Madagascar is the fourth-largest island in the world – larger in land mass than Germany and Spain combined. Despite its size and natural wealth, the country remains relatively undiscovered by international travellers. Surrounded by well-known Indian Ocean holiday destinations like the Maldives, Seychelles and Mauritius, Madagascar stands out for its biodiversity and eco-tourism appeal. 'Our country has won the Indian Ocean's Leading Green Destination award seven times,' noted the minister. 'We're prioritising sustainable and community-based tourism that highlights local culture and biodiversity.' She also pointed to agriculture as a key area for potential Emirati investment, particularly in the context of food security. 'Madagascar is a vast country – I would even call it a quasi-continent,' she said. 'With nearly 600,000 square kilometres of land, and 36 million hectares of arable land, there is immense potential for agribusiness and agricultural transformation.' Regional engagement Madagascar sits at a strategic location along key Indian Ocean shipping lanes, serving as a maritime crossroads between Africa, Asia and the Middle East. Its position near major east-west trade routes makes it a potential hub for maritime commerce, naval logistics and regional connectivity. 'We're extending our main port in Toamasina, and this expansion, expected to be completed by 2026, will further cement our role as a trade hub,' Ms Rasata said. She added that the country's natural assets, including housing 5 per cent of the world's biodiversity, position it uniquely on both the economic and ecological fronts. 'Madagascar has a major role to play – not only as a strategically located country but also as a dynamic market with investment opportunities in agriculture, tourism and renewable energy for Gulf countries and other partners.' Challenges at home Despite these ambitions, Madagascar faces domestic hurdles. A February 2025 World Bank report said that Madagascar's economy is recovering, but growth remains insufficient and too uneven to significantly improve living standards. 'Economic growth remained at 4.2 per cent in 2024. Growth is expected to gradually pick up this year, with projections averaging 4.7 per cent over 2025–2027,' the report said. Ms Rasata emphasised the need to tackle rural poverty, noting that around 80 per cent of the Malagasy population lives in rural areas and depends on agriculture for survival. 'Our focus is on transforming the agricultural sector to support food security, create jobs and add value,' she said. 'Madagascar is already Africa's third-largest rice producer after Nigeria and Egypt. Our goal is to become the first, and to meet local demand, which still requires importing 500,000 tons annually.' She also underscored the importance of attracting both foreign and domestic investment to support this transformation. The World Bank has stressed the urgency of accelerating structural reforms in energy, digital infrastructure and mining to sustain higher growth. Among the most pressing concerns is Madagascar's struggling energy sector. Only about one third of the country's 30 million people have access to electricity, according to the IMF. Critics cite mismanagement, poor governance, and corruption at the state utility Jirama as core obstacles. 'Our energy challenge is existential and we're treating it as such,' said Ms Rasata. 'There is strong political will to ensure our national utility can meet local demand and expand investment in renewable energy.' She outlined the government's target to double the country's energy generation capacity by 2030, with 70 per cent coming from green sources. 'All our efforts are aligned with this goal,' she added.
Arabian Business
2 hours ago
- Arabian Business
UAE airports slash check-in to departure times to just 12 minutes with facial recognition and AI
Airports in the UAE are using biometric technology, facial recognition and advanced AI to enhance passenger journeys and cut down waiting times. Selim Bouri, President for the Middle East and Africa (MEA) at airport technology company SITA, said airports in the UAE, particularly those in Dubai and Abu Dhabi, have established new global benchmarks in innovation, efficiency and passenger experience. He noted the country's clear commitment to digitalisation and the adoption of cutting-edge technologies, particularly in light of the increasing challenge of managing growing passenger volumes. UAE airport technology Bouri explained that SITA works closely with UAE airports to understand their unique needs and opportunities, providing tailored technology solutions, pointing to the implementation of the Smart Travel system at Zayed International Airport in Abu Dhabi—a fully integrated platform for biometric identity processing. This system, he noted, reduces congestion and waiting times while enhancing airport capacity to handle the rising number of international flights. Zayed International Airport experienced strong growth in flight traffic in 2024, making it essential to adopt digital solutions to meet this surge. Bouri described the airport's experience as a testament to the value of advanced biometric processing, highlighting that since the opening of its new terminal in November 2023, the airport has processed more than one million passengers using facial recognition. This has created a unique digital identity for each traveller, enabling a seamless journey from check-in to departure, including border control, in under 12 minutes. The success of the Smart Travel system at Zayed International Airport, he added, paves the way for its adoption at other airports across the UAE. On future technologies passengers can expect at UAE airports, Bouri said that the country's travel experience is increasingly powered by smart solutions that provide efficiency and convenience. He revealed plans to expand biometric processing across airport checkpoints, delivering a fully contactless passenger experience. Self-service technologies, he said, will be a core focus area in the coming years. These include self-check-in kiosks, automated baggage-drop services, and smart boarding gates, all aimed at reducing congestion and streamlining travel procedures. Cybersecurity also remains a top priority within the UAE's airport digital strategies. Bouri emphasised that smart innovations will play a key role in boosting efficiency, minimising waiting times, enhancing safety and reinforcing the UAE's status as a leader in smart, integrated airport systems. He added that the coming decade will witness a significant increase in the deployment of next-generation communication technologies within airports. This will create a highly integrated smart airport ecosystem and flight operation network. Bouri discussed the impact of 5G networks on enabling seamless device-to-device communication, benefitting passengers, systems and operations through improved ground connectivity. He also pointed to future support for sixth-generation network technologies and advanced wireless internet services. Airports, airlines and governments in the Middle East, known for their leadership in innovation, are investing heavily in the latest technologies to enhance passenger experience and streamline airport operations. These include biometric processing systems and e-gates backed by strategic initiatives and major investments. Addressing the role of artificial intelligence and big data in improving flight management and reducing delays, Bouri explained that although airports, airlines and partners generate vast amounts of data, it is not always fully understood or leveraged. Over the next decade, he said, future-ready airports will increasingly rely on big data, predictive analytics and advanced platforms to achieve peak operational efficiency. The growing role of AI and robotics, he clarified, does not eliminate the human factor but rather fosters smart collaboration between people and technology. Bouri concluded that the next decade will see AI extend to more sectors, including: Enhancing flight scheduling Personalised communication with passengers Operations centre support Predictive maintenance Multilingual assistance Automated baggage handling Reduced fuel consumption for autonomous vehicles
Khaleej Times
2 hours ago
- Khaleej Times
UAE residents seek cooler, cheaper Eid, summer destinations amid Schengen visa delays
UAE residents are increasingly opting for cooler, more affordable non-Schengen destinations amid visa difficulties and efforts to avoid overcrowded tourist hotspots ahead of Eid Al Adha and the summer break. Travel agencies in the UAE are seeing growing interest in alternative summer destinations, especially those that are visa-friendly and offer a cooler climate. Top choices include Salalah in Oman and Saudi Arabia's Aseer region, along with scenic destinations across Asia, Africa, and Eastern Europe such as Bali, Japan, Zanzibar, Azerbaijan, Armenia, and Georgia. In the UAE, residents are set to enjoy up to a four-day break during Eid Al Adha next week, from June 5 to 8. Typically, during the school summer break from June to August, UAE citizens and expats flock to cooler European destinations like the UK, Switzerland, France, Germany, and Italy. However, this year, widespread visa delays are prompting a shift in travel plans. Appointments for the 29-country Schengen area remain unavailable until mid-August, and US visa slots are similarly backed up for the coming quarters. 'We've seen a noticeable increase in searches for non-Schengen, cooler destinations compared to the same period last year,' said Mamoun Hmidan, chief business officer at Wego. 'Delays in Schengen and US visa processing, combined with a preference for short-notice travel and less paperwork, are driving this shift. Travellers are also becoming more aware of beautiful, lesser-known alternatives.' Rashida Zahid, vice president of operations at confirmed the trend, particularly among last-minute travellers. 'There's a clear shift toward destinations that are easier to access and have pleasant weather, rather than traditional European hotspots,' she noted. Top visa-friendly summer escapes For GCC travellers, nearby cooler destinations such as Aseer and Abha in Saudi Arabia, particularly after Hajj, and Salalah in Oman during the Khareef season are becoming popular choices, thanks to their convenient e-visa options. Other popular options include Zanzibar, Bali, Japan, and Nepal, which also offer similarly straightforward entry procedures. Visa-free or visa-on-arrival destinations including Georgia, Almaty (Kazakhstan), Armenia, Tashkent (Uzbekistan), Sri Lanka, Mauritius, Seychelles, and Turkish cities like Trabzon and Antalya are gaining popularity. These places offer a mix of mountain retreats, coastal escapes, and lush landscapes — ideal for beating the UAE's intense summer heat without breaking the bank. Affordable getaway options Rashida Zahid shared that all-inclusive packages for cooler destinations start at just Dh2,200 for a 4-night, 5-day trip, covering flights, accommodation, transfers, and tours. Mamoun Hmidan added that Georgia's capital, Tbilisi, and its mountainous regions like Kazbegi are popular among UAE residents due to their cool temperatures, cultural richness, and visa-free entry. Average airfare is around $375 (Dh1,375). Armenia is another top choice, offering e-visa or visa-free access and average airfares of just $232 (Dh850), making it highly attractive for budget-conscious travellers. Azerbaijan's capital Baku is also gaining traction, combining a cosmopolitan vibe with cool Caspian breezes. 'There's a clear shift toward destinations that are affordable, easy to enter, and offer a break from the heat,' Hmidan noted. Discovering hidden gems UAE residents are increasingly opting for travel 'off the beaten path,' in line with the global post-pandemic trend of avoiding crowded tourist hubs and discovering hidden gems. 'Many travellers are adjusting their timelines due to visa appointment delays, booking more flexible and refundable trips, and selecting backup destinations with easier visa access,' said Hmidan. Rashida Zahid observed that travellers are becoming more proactive, planning trips four to six months in advance — especially for the busy summer season — due to limited visa appointment availability.
