Geneva based International Air Transport Association (IATA) said on Tuesday that air travel demand in the Middle East will increase 1.2% this year. However because of current overcapacity, airlines will post a loss. Capacity has increased 3.8% this year. The IATA just revised its projected loss estimate for the coming year at $800 billion, four times their initial forecast .
IATA said that the airlines in the region continue to add capacity ahead of growth and despite difficult economic conditions will be the only region with demand growth in 2009.