Dubai's Emirates airline is considering the introduction of a new 'premium-economy class' in the next 12 to 18 months, as declining oil revenues prompt Middle Eastern customers to tighten travel budgets, said a report.

According to a report on Bloomberg, work on the introduction of a new premium-economy class pitched between business and coach is at a “fairly advanced stage", said Tim Clark, the airline’s president.

The Gulf airline has been looking at other revenue streams as it has been faced with pressures on margins caused by a strong dollar and tougher competition.

The airline hopes that the new premium-economy class, a class between economy and business, could prove attractive to corporate passengers affected by the decline in the oil price and tighter travel budgets.