Regional airlines are placing enormous aircraft orders and building new mega-hub airports, positioning Gulf carriers to capture a growing share of global long-haul passenger traffic connecting through the region rather than flying direct.
Major Gulf carriers have placed some of the largest aircraft orders in commercial aviation history in recent years, part of a strategic bet on the region’s geographic position roughly equidistant between major population centers in Europe, Asia, and Africa, making it well-suited to connecting long-haul passengers who would otherwise need multiple stopovers.
Several Gulf states have invested heavily in massive new airport terminal capacity specifically designed to support this hub strategy, betting that superior connectivity and premium passenger experience can continue drawing long-haul traffic away from competing hub airports in Europe and Asia.
Competition among hub airports has intensified considerably
This aggressive expansion strategy has intensified competition among the region’s own major hub airports, each competing for the same pool of connecting long-haul passengers, alongside continued competition from established European and Asian hub airports also investing in their own capacity expansion.
“Every major hub in the region is betting on the same growth in long-haul connecting traffic. Not every hub’s bet can pay off equally.”
With global long-haul passenger demand continuing to grow overall, most industry analysts expect the region to maintain and likely grow its significant share of global connecting traffic, even as competition intensifies among the Gulf’s own major carriers and hub airports for the largest piece of that growing market.
