Arab airlines will carry more than 42 million passengers this year, generating Dh44 billion ($12 billion) in revenue, said a top official.

Throughout the Middle East, passenger traffic at airports will increase to 137.6 million by the end of the current year from 119.4 million last year. The balance 95.6 million passengers, or 69.47 per cent, are being handled by non-Arab carriers.

Emirates airline generated Dh14 billion ($3.8 billion) in revenue carrying 10.4 million passengers during its 2003-04 financial ending last March.

Abdul Wahab Teffaha, secretary general of the Arab Air Carriers Organisation (AACO), said: "Revenue passenger kilometres (RPKs) have gone up by 24 per cent this year over the same last year. This is 60 per cent higher than the RPKs of 2000 and shows a resilent aviation sector which has withstood many challenges in the recent years.

"The Middle East is one of the fastest growing regions in the global aviation industry. Fast-growing carriers like Emirates and Qatar Airways are leading the regional aviation industry's growth. If everything remains good, we are looking at a 15 per cent growth next year over this year's performance."

About 23 AACO members carry 99 per cent of the 42 billion passengers.

Meanwhile, about 300 delegates from 31 countries representing 141 companies are participating at the Third Middle East Duty Free Conference which began yesterday.

Shaikh Ahmad Bin Saeed Al Maktoum, President of Dubai Civil Aviation and Chairman of Emirates Group, inaugurated the two-day event.

"The aviation industry in the Middle East is also undergoing major development and the increase of new airlines, including the low-cost carriers, is having a significant impact on the tourism sector in general and the travel retail sector in particular," Shaikh Ahmad said.

"The Middle East duty free industry continues to be the fastest growing in the world with most of the regional operators reporting record growth in 2004. This growth can be attributed in part to the global return of air travel to pre-9/11 levels."

Duty free sales across the Middle East is going up from last year's Dh2.92 billion ($795.6 million) to Dh4 billion ($1.08 billion) this year. This include Dh1.83 billion ($500 million) estimated sales at the Dubai Duty Free (DDF), No. 3 in the global ranking. Globally, travellers spend $20.5 billion at duty free shops.

Retail sales at the DDF represent about a half of the Middle East's duty free sales.

Mohammad Mounib, president of the Middle East Duty Free Association (Medfa), said: "Middle East is at the epicentre of global travel growth. Ten airports from the Middle East are within the top 100 airports in the world ranked by retail sales. Four of them are within the top 50 and proudly one of them (Dubai International Airport) within the top three."

©Gulf News