The average real airfare in the UAE has fallen by 35% over the past 12 years, driven by the rise of low-cost airlines and intensified competition in the aviation sector, according to a new report from the International Air Transport Association (IATA).
Released during the World Cargo Symposium in Dubai, the IATA report highlights that this significant reduction in ticket prices—from 2011 to 2023—has made air travel more accessible across the country. Globally, airfares have dropped 70% in the past five decades.
The UAE’s aviation market has seen rapid expansion, with new budget carriers like Wizz Air Abu Dhabi and Air Arabia Abu Dhabi joining established giants such as Emirates, Etihad Airways, flydubai, and Air Arabia. These developments have increased flight options and affordability for travelers, especially for cost-conscious passengers.
“The UAE is a critical hub for global connectivity,” said IATA Director-General Willie Walsh. “Its strategic vision, robust infrastructure, and pro-aviation policies have enabled the country to become a super-connector for trade, tourism, and investment.”
The report also notes that the UAE boasts one of the world’s strongest air connectivity networks. With seven international airports, the country is directly connected to 304 airports across 109 countries. There are 857 daily outbound flights operated by 126 airlines, and 162 international routes have been added in just the past five years.
Air travel has become more affordable for UAE residents relative to income levels. On average, a UAE resident needs to work only 1.9 days to purchase a flight ticket, based on a GDP per capita of AED 180,000 in 2023. By contrast, individuals in countries with lower wages, such as India, Pakistan, and many African nations, often need to work over 15 days to afford a similar ticket.
The aviation sector’s impact on the UAE economy is substantial. According to IATA, the industry directly employs 206,800 people and contributes $26.6 billion—around 5.3% of the country’s GDP. When factoring in indirect economic activities such as tourism and the supply chain, the sector supports nearly 1 million jobs and contributes a total of $92 billion to GDP.
Tourism alone, fueled by international air travel, adds $22 billion to the economy and supports 297,300 jobs. International tourists in the UAE spend an estimated $47.7 billion annually on local goods and services.
In 2023, all 34.8 million origin-destination departures from the UAE were international. The Asia-Pacific region accounted for the largest share of passenger traffic (40%), followed by Europe (24%) and the Middle East (23%).
“Aviation supports nearly a fifth of the UAE’s economy and nearly a million jobs,” said Walsh. “With continued investment and smart policy, this contribution will only grow in the years ahead.”
