International air travel between the Middle East and other markets experienced healthy growth in July compared to the same period last year, recent figures showed.

According to a report released by the International Air Transport Association (IATA), international air travel growth on Africa-Middle East (16.0 per cent), Europe-Middle East (22.4 per cent) and Middle East-Far East (13.4 per cent) were all given a boost in July when compared to their respective year-to-date trends.

The growth trend on these markets has been solid so far this year despite major economies in the Middle East, including Saudi Arabia and the UAE, having seen notable declines in non-oil sectors in H1 2015 (Markit). Nonetheless, the rates of economic growth remain robust and this should help to sustain solid growth in air travel demand to/from the region, the report said.

Overall, passenger travel on international markets was up 6.8 per cent in July year-on-year, with premium travel going up 8.5 per cent and economy travel rising 6.6 per cent.

Growth in premium international travel has been relatively slower due to weakness in business travel demand drivers, with global business confidence being dragged down by emerging markets.

For the second consecutive month, we are seeing slow growth within the Far East. This result could be early signs of weakness in air travel demand following months of sluggish economic performance in some parts of Asia, it said.

Economic conditions in the Eurozone remain fragile, but there have been some positive developments with early Q3 data showing increases in business activity. Efforts by the ECB to stimulate economic growth have led to an improvement in business sentiment in the Eurozone and this has now started to translate to stronger demand for air travel with the region.

Premium travel growth within Europe was up 14.0 per cent in July year-on-year. Economy class travel rose at a slower 6.1 per cent rate, but is still above the 3.0 per cent trend year-to-date growth rate.

Looking ahead, although improvements in the Eurozone economy have translated in to stronger demand for travel in both premium and economy classes over recent months, weakness in emerging markets could counter this positive trend. The July data for some markets suggests downside risks may already be materializing, it said. – TradeArabia News Service