Global tourism activity has continued its recovery momentum after the Covid-19 pandemic, supported by sustained investment in tourism infrastructure and expanding air connectivity. This trend is expected to continue over the medium term, underpinned by rising disposable incomes in key source markets and targeted government strategies to position tourism as a driver of economic diversification. Revenue performance has strengthened across the global aviation industry. After several years of volatility, the sector returned to profitability in 2023 and has since moved into a phase of stabilisation. According to industry estimates, global aviation profit is projected to increase steadily as capacity constraints ease and demand normalises across passenger and cargo segments.
Performance has been particularly strong in the Middle East, which remains home to major international aviation centres such as Dubai International Airport in the UAE and Hamad International Airport in Qatar. These facilities continue to benefit from their geographic positioning, extensive route networks and investment in airport infrastructure, reinforcing the region’s role as a connector between Africa, Asia and Europe. In the Asia-Pacific region, aviation activity has gathered pace since 2023, with international and regional routes subsequently seeing sustained growth.
Expansion
As sector confidence improves, a number of emerging markets are pursuing aviation expansion through the launch of new national carriers and largescale investment in aircraft, positioning air transport as a catalyst for broader economic development. October 2025 saw the inaugural flight of Saudi Arabia’s Riyadh Air. The airline was created as part of the Kingdom’s ambition to establish Riyadh as an international aviation centre. Riyadh Air is expected to connect Saudi Arabia to 100 destinations worldwide by 2030, supported by the development of the $30bn King Salman International Airport, which is set to become one of the largest airports globally upon completion in 2030. Saudi Arabia has continued to invest heavily in fleet expansion, including major aircraft orders placed with global manufacturers by Saudia, as well as new venture Riyadh Air. These commitments signal long-term confidence in aviation demand and align with broader efforts to strengthen logistics, tourism and trade connectivity.
Elsewhere, efforts to re-establish or expand national carriers are under way. In West Africa, Ghana Airlines has progressed preparations to commence operations following the collapse of its previous national carrier in 2010. Nigeria has also advanced plans for its national airline, Nigeria Air, supported by strategic investment from Ethiopian Airlines, although the initiative has prompted debate within the domestic aviation sector regarding competition and market structure.
Sustainable Fuels
As aviation activity expands, environmental considerations are becoming central to sector strategy. Sustainable aviation fuels (SAFs) are set to play a growing role. Produced from feedstocks such as used cooking oil, agricultural waste and biomass, SAFs can reduce lifecycle carbon emissions by up to 80% compared to conventional jet fuel. To meet global net-zero targets by 2050, SAFs would need to account for around 65% of aviation fuel use, requiring significant scaling of production capacity. Production of the fuel is estimated to have doubled in 2025 alone. The UAE has positioned itself as an emerging SAF centre. Emirates has conducted demonstration flights using high SAF blends, while national entities including Masdar and Abu Dhabi National Oil Company are advancing feasibility studies for domestic SAF production using renewable hydrogen and waste-based feedstocks.
Latin America also holds strong potential due to its biofuel capacity and expanding green hydrogen investments. Major international players are pursuing SAF projects across the region, with developments under way in Paraguay, Brazil and Colombia, where biofuel producers and energy companies are targeting commercial-scale production leading up to 2030.
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