By Staff Reporter
UAE Airfares Drop 35% in 12 Years Amid Rise in Budget Airlines and Demand for Low-Cost Travel
Air travel in the UAE has become significantly more affordable, with average real airfares dropping 35% between 2011 and 2023, according to the International Air Transport Association (IATA).
The decline is largely driven by fierce competition between local and foreign carriers, the rise of low-cost airlines, and increasing demand.
The UAE’s aviation landscape has expanded rapidly, with the launch of budget airlines such as Air Arabia Abu Dhabi and Wizz Air Abu Dhabi complementing legacy carriers like Emirates, Etihad, flydubai, and Air Arabia. This growth has translated into more choices and lower costs for passengers.
The country now boasts seven airports offering scheduled commercial flights, 304 direct international connections, and 126 operating airlines. In the last five years alone, 162 new international routes have been added.
“The UAE is a critical hub for global connectivity,”
said IATA Director-General Willie Walsh, highlighting the country’s strategic investments and regulatory support.
Affordability has improved, too. Based on average GDP per capita and airfare costs, UAE residents typically need to work only 1.9 days to afford a flight—compared to over 15 days in many developing nations.
Aviation remains a cornerstone of the UAE economy. It directly employs over 206,000 people and contributes $26.6 billion to GDP. When accounting for the wider supply chain and tourism, the sector supports nearly 1 million jobs and adds $92 billion to the economy—equivalent to 18.2% of GDP.
Dubai continues to lead as a global aviation hub, with the country recording 3,668 flights per 1,000 people in 2023. Asia Pacific remains the top travel market, followed by Europe and the Middle East.
News Source: Khaleej Times
