Budget travellers cause jump in flight demand

New routes and growing competition have lead to a rise in demand for low cost air travel.

Budget airlines are witnessing a rise in passenger demand as cost-conscious travellers respond to discounting by low-cost carriers, according to local media.

Research produced by Euromonitor International also indicates that outbound travel has been affected by slowing economic growth.

“This resulted in many consumers becoming more cautious in their expenditure, while many expatriates were also hit by poor economic conditions in their own countries," said Euromonitor International travel project manager Nadejda Popova.

Meanwhile, "the carriers themselves have been heavily promoting and discounting their product offering of late".

Kuwait’s budget airline Jazeera Airways reported a 3.2% increase in passenger figures during the first half of the year, despite also reporting a 3% decline in net profit.

Flydubai added 19 destinations in 2015, including flights to east Europe and Central Asia.

Musafir chief operating officer Raheesh Babu said the company has sold about 1,850 package deals on budget holidays, compared to 650 packages last July.

Dubai Corporation for Tourism & Commerce Marketing (DTCM) accomplished first quarter targets in 2016 by achieving 5% growth in arrivals, according to DTCM CEO Issam Kazim.