Traffic on the longer-haul routes from the Middle East to the Far East and Europe surged 9.3 per cent and 7.5 per cent in 2014, leading to the growth of international RPKs (revenue per kilometre) at a much faster rate than passenger numbers, a report said.

The growth in premium travel on these markets was also very strong (8.1 per cent and 10.1 per cent, respectively), which is a good sign for yields on these routes, added the 2014 Traffic Monitor published by the International Air Transport Association (Iata).

Major economies in the Middle East, including Saudi Arabia and UAE, continue to show robust economic performance, the report said.

Markit measures of business activity (both manufacturing and services) show sustained economic growth ahead, with the latest whole economy PMI (Purchasing Managers’ Index) for the UAE surging strongly at the start of Q4 to reach the highest level since the Indices’ creation in 2008.

Globally, air travel recorded another moderate rise to end 2014, up 3.7 per cent in December compared to a year ago. The annual expansion was just slightly below the December result – growth in 2014 overall was 3.6 per cent compared to 2013.

There was little difference in performance of premium and economy seat classes, with annual growth of 3.4 per cent and 3.7 per cent, respectively. This near equalization of growth rates has limited improvement in premium’s share of total travel.

The growth trend in international passenger travel has flattened over the past several months. International air travel volumes have increased only slightly in both seat classes since mid-2014.

This development reflects a gradual slowdown in improvements in business confidence throughout the second half of 2014, with economic conditions in the Eurozone and China deteriorating, the report said.

Nonetheless, travel within Europe itself performed well overall in 2014, expanding 3.9 per cent, facilitated by expansion in capacity and routes, as well as declines in airfares.

But markets like within Far East weakened considerably, up just 1.4 per cent in 2014 overall, with travel declines in Thailand and Malaysia as well as some slowdown in the Chinese economy. – TradeArabia News Service