Budget travel on the rise as low-cost carriers expand in Middle East

by Tanvir Awan
Dubai Airports

Budget travel options across the Middle East are expanding rapidly as low-cost carriers (LCCs) continue to reshape the region’s aviation landscape.

With a growing number of UAE and regional residents seeking affordable travel, new data shows that LCCs now make up nearly a third of all seat capacity in the Middle East.

According to OAG’s latest report, Middle East Skies: A New Era of Competition, Capacity and Growth, the region’s aviation market has grown by 5% since 2019, making it the second-fastest growing in the world, behind only South Asia.

Low-cost carriers lead regional growth

Low-cost carriers have played a major role in this surge. flynas, based in Saudi Arabia, posted a 63% capacity increase since 2019, making it the fastest-growing airline in the Middle East. flydubai followed with 56% growth, with both airlines operating nearly 14.4 million departing seats each in 2024. flynas narrowly led by around 25,000 seats.

Overall, LCCs now represent 29% of total regional capacity, up from just 13% in 2014. Over the past decade, budget airline capacity has grown at an average annual rate of 11.5%, far outpacing traditional full-service carriers.

Egypt a top LCC destination

Egypt continues to dominate LCC routes, especially for carriers operating between the Middle East and Africa:

  • 96% of flyadeal’s African routes go to Egypt

  • 81% of flynas’s Africa-bound seats are also to Egypt

  • 73% of Air Arabia’s Africa network is focused on Egypt

These figures highlight Egypt’s affordability and popularity as a quick getaway for cost-conscious travellers across the region.

Competitive air corridors

Some of the most competitive routes in the Middle East include:

  • Cairo–Riyadh (CAI–RUH): served by eight carriers

  • Dubai–Riyadh (DXB–RUH) and Cairo–Jeddah (CAI–JED) also see high traffic volumes

  • Dubai to London Heathrow (DXB–LHR) remains a tightly held route with four airlines competing

Traditional carriers still strong

While low-cost airlines are rising, legacy carriers like Emirates, Qatar Airways, and Saudia still lead in total capacity. Together, these three operated 127 million departing seats in 2024. Emirates and Qatar Airways also ranked among the Top 20 Global Airlines by Capacity and the Top 10 by Available Seat Kilometers.

The growth in both segments reflects the Middle East’s position as a global aviation hub.

“The Middle East region’s strategic position as a global hub, coupled with the dynamic expansion of both low-cost and network carriers, is driving unprecedented opportunities. This vibrant market is setting the stage for future advancements in aviation technology and passenger experience, and at OAG, we are thrilled to support this evolution,” said Filip Filipov, Chief Operating Officer at OAG.

tanvir@dubainewsweek.com

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