Gulf airlines, owned by governments in the world's top oil-exporting region, said they would push ahead with major fleet and route expansions and post profits, despite a global downturn that has hit air travel.
Globally, airlines have faced falling demand as major companies slash business travel budgets and moribund trade hits freight traffic, but the Middle East was the only region that saw passenger demand grow in March, according to the International Air Transport Association.
The boldest statement came from Qatar Airways, whose chief executive said the airline would push ahead with plans to grow its fleet to over 110 planes by 2013 from around 68 now and make new orders at the Paris Air Show next month.
Long term, Qatar Airways has placed orders for more than 200 aircraft worth a total of $40 billion and plans to increase its routes to 120 in five years, from 84 now.
"Whatever is happening around the world will not affect our growth plans. We are committed and remain committed to growth and all our expansion is pressing ahead on schedule," Chief Executive Akbar al-Baker said in a statement.
"We are already profitable and expect to make profit in the 2009-10 financial year," he later told reporters at a travel fair in the Gulf trade and tourism hub of Dubai. Cargo traffic was up 8 percent in the first quarter on the same period of last year, he told Reuters, predicting an 11 percent increase in cargo traffic for the full year.
Other Gulf airlines are not planning new orders but demand for passenger and cargo flights is prompting them to push ahead with multi-billion dollar plane orders that were made in the midst of a six-year boom fuelled by high oil price. Oil prices have collapsed from a peak near $150 a barrel in July, hitting government revenues around the oil-exporting Gulf, but governments have pledged to keep spending to boost growth.
Qatar Airways expects its first delivery of Boeing Co's 787 Dreamliner jet in 2011, over a year later than originally scheduled, but was expecting compensation for the delay, Baker said. The airline has 30 787 Dreamliners on order. Dubai's Emirates expects no delays in the delivery of either the Boeing or Airbus planes it has on order. Neither does Etihad, which is owned by neighbouring Abu Dhabi, the capital of the United Arab Emirates federation.
"There will be no delays in 2009, 2010 or 2011," Emirates Chairman Sheikh Ahmed bin Saeed al-Maktoum told reporters.
"We are still receiving 17 aircraft this year and we have recently received one A380 so we have five now." Emirates has ordered 58 of the A380, the world's largest passenger aircraft. It also has Boeing aircraft on order.
Sheikh Ahmed also said Emirates expected to post profits in the 2008-9 financial year, denying rumours that it could merge with Etihad as the financial crisis hits the former Gulf boomtown of Dubai and squeezes its government's finances.
The upbeat comments come in stark contrast to news of empty business seats and falling freight traffic in much of the world. US majors last month reported traffic declines of up to 13 percent for March, but Middle Eastern airlines saw international passenger demand rise 4.7 percent in March, according to IATA.
Chicago-based Boeing and rival Airbus are being hit hard as airlines facing a slump in passenger demand cut back on orders. Boeing said last month its first-quarter profit had halved due to deferrals by cash-strapped airlines, though its delayed 787 was on track for its first flight in the second quarter.
IATA said a 13 percent increase in capacity among Middle Eastern airlines in March would cause a market imbalance, but Gulf airline executives said they were thinking long term.