Middle East airlines saw a 9.7 percent increase in demand in July, outstripping the 8.9 percent capacity increase, the International Air Transport Association (IATA) said on Friday. Load factors for the month stood at 81.4 percent, more than one percent higher than the global average, it said in a statement. The region\'s carriers posted the strongest freight performance in July with gains of 8.4 percent over the same month in 2010, IATA added. Overall, global passenger travel was up 5.9 percent over July 2010 while freight markets stagnated with a 0.4 percent demand decline over previous year levels. Tony Tyler, IATA’s director general and CEO, said: “Passenger travel bucked the gloomy economic outlook with a 5.9 percent increase in July. This increase was likely based on the much more optimistic economic outlook that marked the beginning of the year. \"With business and consumer confidence now tanking, sluggishness in international trade, and high fuel prices, the expectation is for a weaker end to the year.” International passenger markets, which grew by 7.3 percent compared with July 2010, remained stronger on average than domestic markets which showed weaker growth of 3.5 percent year over year, IATA said. Compared to pre-recession levels of early 2008, international passenger traffic has expanded by 12 percent, it added. “July is the peak in the annual cycle for passenger traffic. This year was no exception. But even if the industry’s performance could be classified as stronger than expected, we do face headwinds as we look towards the end of the year,\" added Tyler. From / Arabian Business News