Airfares in the UAE have decreased by 35% over the past 12 years, largely attributed to the introduction of new low-cost carriers and heightened competition as demand for air travel continues to rise, according to the International Air Transport Association (IATA).
“Over the last half-century, flight costs worldwide have dropped by 70%, improving accessibility to air transport. Between 2011 and 2023, the average real airfare in the UAE declined by 35%,” stated IATA in a report published on Wednesday.
Intense rivalry among both local and international airlines has played a significant role in reducing airfares. The UAE has welcomed several new airline ventures, including Air Arabia Abu Dhabi and Wizz Air Abu Dhabi. Major players such as Emirates, Etihad Airways, Air Arabia, and flydubai already serve numerous destinations around the globe. This array of options greatly benefits travelers, particularly those opting for budget airlines.
The UAE is recognized for its excellent air connectivity, boasting 7 commercial airports, direct connections to 304 international airports, and links to 109 countries. Each day, 857 outbound flights operate, with 126 airlines in service. In the past five years alone, local and international airlines have introduced around 162 new international routes.
“The UAE stands as a vital hub for international connectivity. The advantages of its role as a super-connector include driving trade, tourism, investment, and job creation within the UAE. The leadership of the UAE maintains a strategic vision for aviation, complemented by effective regulations and investments in top-notch infrastructure,” remarked Willie Walsh, IATA’s director-general.
Working Days Needed to Afford a Flight
IATA indicated that residents in the UAE need to work approximately 1.9 days to purchase a flight ticket; this figure is derived from the average airfare for travel and GDP per capita as of 2023.
The World Bank reported that the UAE’s GDP per capita was Dh180,000 for 2023, averaging a monthly salary of Dh15,000. Based on a two-day work period, UAE residents can earn around Dh1,000, making air tickets—especially those with low-cost carriers—affordable for many destinations.
In comparison, individuals in the GCC, United States, Canada, Europe, Australia, and other regions typically need to work fewer than five days to afford an air ticket.
Conversely, residents of Africa, India, Pakistan, and other countries within the commonwealth generally must work more than 15 days to secure a flight ticket, due to lower wages and the high cost of air travel.
Nearly One Million Jobs in Aviation
The demand for air travel, both in the UAE and globally, has led to rapid expansion within the aviation sector over recent decades. Dubai has established itself as a premier global aviation hub and continues to handle the highest volume of international passenger traffic.
The IATA report, released during the World Cargo Symposium in Dubai, noted that for every 1,000 residents in the UAE, there were 3,668 flights taken in 2023.
The aviation industry employs around 206,800 individuals directly and generates an economic output of $26.6 billion, contributing 5.3% to the UAE’s GDP. The broader supply chain, coupled with tourism and employee spending, aggregates to an economic impact of $92 billion and supports 991,500 jobs.
Aviation-related tourism contributes $22 billion to the nation’s GDP and provides employment for approximately 297,300 people. Additionally, international visitors to the UAE are estimated to inject around $47.7 billion annually into the economy through the acquisition of goods and services from local establishments.
“Aviation supports nearly a million jobs and accounts for 18.2% of GDP, significantly enhancing the UAE’s economic and cultural prosperity. We anticipate this contribution will grow as the UAE continues to foster opportunities for the aviation sector,” stated Walsh.
In 2023, international air traffic made up 100% of the total origin-destination (O-D) departures from the UAE, amounting to 34.8 million passenger departures. The Asia Pacific region was highlighted as the largest market for passenger traffic from the UAE, primarily due to a substantial expatriate population from that area. This was followed by movements to Europe and the Middle East, with approximately 14.1 million passengers traveling from the UAE to Asia Pacific (40% of total departures), 8.5 million to Europe (24%), and 7.9 million within the Middle East (23%).