Average real airfares in UAE have fallen by 35 per cent in 12 years due to the launch of new low-cost airlines and growing competition amid rising demand for air travel, according to the International Air Transport Association (Iata).
"In the past 50 years, flight costs have decreased by 70 per cent globally, making air transport more accessible. The average real airfare in the UAE decreased by 35 per cent between 2011 and 2023,” the global aviation body said in a research released on Wednesday.
Strong competition between local and foreign airlines has helped reduce airfares over the years. The UAE has seen the launch of several new airlines, such as Air Arabia Abu Dhabi and Wizz Air Abu Dhabi. Market leaders Emirates, Etihad Airways, Air Arabia and flydubai already operate to hundreds of destinations across the globe. These growing options also benefit passengers, especially from the perspective of low-cost airlines.
The UAE also has one of the best air connectivity globally. It is home to 7 airports with commercial scheduled flights, 304 international airports directly connected, 109 countries connected by direct flights, 857 outbound daily flights and 126 airlines operating. Local and foreign airlines added around 162 new international routes in the last 5 years.
“The UAE is a critical hub for global connectivity. The benefits of its super-connector role include bringing trade, tourism, investment, and jobs to the UAE. The leadership of the UAE has a strategic vision for aviation, supported by smart regulation and investment in world-class infrastructure,” said Willie Walsh, director-general of Iata.
Iata said UAE residents need to work 1.9 days to afford a flight ticket; this is based on the average fare for travel and GDP per capita in 2023.
According to the World Bank, the UAE’s per capita was Dh180,000 in 2023, averaging Dh15,000 monthly salary. Based on two days of work, UAE residents can earn Dh1,000, which allows them to afford air tickets to many destinations, especially for budget carriers.
Meanwhile, residents in the GCC, the US, Canada, Europe, Australia and some other countries are required to work less than 5 days to afford an air ticket.
People in Africa, India, Pakistan and other commonwealth countries must work over 15 days to afford an air ticket due to low wages and the high cost of air travel.
Due to the growing demand for air travel in the UAE and globally, the aviation sector has grown exponentially over the past decades. Dubai has emerged as a global aviation hub; it remained the busiest airport in terms of international passenger traffic.
Overall, 3,668 flights per 1,000 people were taken in 2023 in the UAE, according to the Iata report, which was launched on the occasion of the three-day World Cargo Symposium, which began in Dubai on Tuesday.
Iata said that 206,800 people are directly employed in aviation, generating $26.6 billion in economic output, which is equal to 5.3 per cent of UAE’s GDP.
Additional benefits are generated by the wider supply chain, employee spending, and tourism activities, contributing a total of $92 billion to GDP and 991,500 jobs.
Tourism supported by aviation contributes $22 billion to the country’s GDP and employs 297,300 people. International tourists to the UAE are estimated to contribute $47.7 billion annually to the economy by purchasing goods and services from local businesses.
“Supporting nearly a million jobs and 18.2 per cent of GDP, aviation makes an enormous contribution to the UAE’s prosperity — both culturally and economically. And we can be confident that this contribution will strengthen as the UAE continues to facilitate opportunities for aviation to thrive,” said Walsh.
International air traffic accounted for 100 per cent of total origin-destination (O-D) departures for the UAE in 2023, equal to 34.8 million passenger departures. Asia Pacific was the largest international market for passenger flows from the UAE due to a large number of expats from this region working in the UAE. This was followed by Europe and the Middle East. Almost 14.1 million passengers departed from the UAE to Asia Pacific (40 per cent of the total), 8.5 million to Europe (24 per cent of the total), and 7.9 million to another country in the Middle East (23 per cent of the total).
