RIYADH: Middle Eastern airports are prioritizing sustainability, eco-friendly infrastructure and renewable energy to combat climate challenges, a recent study showed. 

In its latest report, Bain & Co., a management consulting firm, also underscored the rising demand for seamless and personalized travel experiences driven by evolving passenger expectations. 

To address this, regional airports are also heavily investing in digital solutions that offer real-time communication and integrated mobility platforms. 

Discussing the growing emphasis on sustainability initiatives among the region’s airports, Akram Alami, Middle East head of utilities, aviation, and sustainability & responsibility practices at Bain & Co., said: “They aim to reduce their environmental impact through efforts like achieving carbon-neutral certification, designing eco-friendly infrastructure, and adopting renewable energy.” 

He added: “These initiatives are part of a broader strategy to address climate change and meet passenger expectations for more sustainable travel options.”  

The report also highlighted that airports in the region face several obstacles while implementing these sustainable practices, including high expenses for renewable technologies and regulatory issues. 

“Key challenges include high initial costs for green technologies, regulatory constraints, and the need for stakeholder alignment. Technological limitations and the need to integrate sustainability into existing infrastructure without disrupting operations also pose significant challenges,” noted Ilya Yamshchikov, associate partner at Bain & Co. Middle East.  

The report stated that other factors driving the growth of airports in the region include the adoption of technology and the commitment to meeting passenger expectations. 

Moreover, digital biometric screening and contactless services are streamlining security and boarding processes, it added. 

The US-based firm further pointed out that airports are also leveraging technologies like computed tomography baggage scanners and body scanners to expedite security checks without compromising safety. 

“These trends are expected to continue shaping the development of airports, leading to more efficient and passenger-centric facilities. They will significantly transform airline operations and the overall travel experience, making air travel more accessible, enjoyable and sustainable for future generations,” said Mauro Anastasi, partner and a member of the Aviation practice at Bain & Co.  

In December 2023, Saudi Arabia’s Riyadh Airports Co. partnered with Cognizant to bolster its digital capabilities in finance, human resources, procurement, and planning, with the goal of enhancing traveler experience. 

Moreover, in November 2023, Abdulaziz Al-Duailej, president of Saudi Arabia’s General Authority of Civil Aviation, stated that the Kingdom is working to finalize a comprehensive systematic plan to address environmental sustainability in the aviation sector. 

In terms of passenger expectations, a report released by GACA in April revealed that all airports in Saudi Arabia that received passenger complaints in March resolved them on time. 

SINGAPORE: Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from US Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp fuel demand in the world’s biggest economy, according to Reuters.

Brent crude futures slid 25 cents, or 0.3 percent, to $82.54 a barrel by 8:05 a.m. Saudi time, while US West Texas Intermediate crude futures were at $78.07 a barrel, down 19 cents, or 0.2 percent.

“Oil markets shrugged off the impact of the Middle East conflicts and shifted attention to the world economic outlook again,” Auckland-based independent analyst Tina Teng said.

China’s producer price index contracted in April, suggesting that business demand remained sluggish, she said, adding that recent US economic data signalled a slowdown as well.

Both benchmarks settled about $1 lower on Friday as Fed officials debated whether US interest rates are high enough to bring inflation back to 2 percent, offsetting gains earlier last week from the Israel-Gaza conflict.

Analysts expect the US central bank to keep its policy rate at the current level for longer, supporting the dollar. A stronger greenback makes dollar-denominated oil more expensive for investors holding other currencies.

Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as US gasoline and distillate inventories rose in the week ahead of the start of the US driving season.

Refiners globally are struggling with slumping profits for diesel as new refineries boost supplies and as mild weather in the northern hemisphere and slow economic activity eat into demand.

Still, the market remained supported by expectations that the Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, could extend supply cuts into the second half of the year.

Iraq, the second-largest OPEC producer, is committed to voluntary oil production cuts agreed by OPEC and is keen to cooperate with member countries on efforts to achieve more stability in global oil markets, its oil minister told the state news agency on Sunday.

The minister’s comments followed his suggestion on Saturday that Iraq had made enough voluntary reductions and would not agree to any additional cuts proposed by the wider OPEC+ producer group at its meeting in early June.

Earlier this month, OPEC+ called out Iraq for pumping over its output quota by a cumulative 602,000 barrels per day in the first three months of 2024.

The group said that Baghdad had agreed to compensate with additional production cuts over the rest of the year.

In the US, the oil rig count fell by three to 496 last week, their lowest since November, Baker Hughes said in its weekly report on Friday.