Premium Travel Still on the Increase

Recent research shows that the number of premium travellers carried by airlines in July increased by 7.5% compared with the same to month last year.

The figures, published by the International Air Transport Association (IATA), show a 5% increase on the numbers for the end of 2010. IATA also reported a rise in economy passengers of 5.5% compared with July last year. It is the second consecutive month that IATA has reported an increase in premium figures, recording a 6.4% leap in June.

The airline cartel said premium figures were still 6% below pre-recession numbers. It said: “After a period of weakness at the end of the first quarter and the start of the second, both markets have rebounded to regain the trend-lines evident in the second half of last year. These trends are close to the average of the past twenty years. Premium travel is still 6% below its pre-recession peak, but economy travel is 6% above its previous high point. As of July, there was no sign yet of the deepening economic gloom discouraging air travel.”

 

The strongest areas of expansion were in the developing markets of the Far East and South America where IATA said there was “solid, double digit growth supported by still strong economies.” But the Association said other markets did not fare as well, notably those linked to the “troubled European economies, across the Atlantic and within Europe”.

The one exception was the European-Far East market which continued to show double figure growth in both premium and economy. But IATA said forward looking indicators were “gloomy” for premium travel. It said growth in trade had stopped and business confidence had fallen which suggested any rise in premium travel would stall in the last quarter of the year.