International air travel growth rates on Europe-Middle East was up strongly, hitting 11.3 per cent in August, according to the latest figures released by the International Air Transport Association (Iata).

In contrast, Africa –Middle East and Middle East –Far East were relatively weaker, up 2.2 per cent and 3.7 per cent, respectively, the Iata report said.

This is likely due to adverse developments in Asia and Africa, rather than any major downturn in the Middle East. Although key economies in the Middle East, including Saudi Arabia and the United Arab Emirates, have seen notable declines in non-oil sectors in the first half of 2015, the rates of economic growth remain robust and this should help to support growth in air travel demand to/from the region, Iata said.

Globally, passenger travel was up 5.4 per cent in August year-on-year, reflecting strong growth on the Within Europe travel market.

Both travel classes showed an above-trend rise in August year-on-year – premium travel was up 5.3 per cent and economy travel rose 5.4 per cent.

Economy class travel - the more price sensitive travel market – has experienced stronger growth so far this year, supported by lower fares over recent months, while growth in premium international travel has been subdued due to weakness in business travel demand drivers, particularly in emerging markets.

The major contributor to the August industry figure (about 40 per cent) was the Within Europe market, which includes connecting segments of longer-haul travel.

Growth in premium travel across the North Atlantic also started to accelerate, up 6.8 per cent in August, which is a good sign for yields and revenues.

The strength of air travel activity within Europe was more than enough to offset weakness in other markets, most notably in Asia.

“Looking ahead, if we extend the current trend in volumes through to the end of 2015, we could see year-on-year growth in the solid range of 4-5 per cent,” said Iata, noting that this growth, however, is narrowly based and largely driven by travel Within Europe and across the North Atlantic.

With slowdown on key markets like Within Far East, as well as continued weakness in business confidence and world trade, the outlook for international air travel growth remains fragile, Iata concluded. – TradeArabia News Service