Air looks good for air market, says IATA

Positive trends in premium traffic growth reflected in IATA's latest analysis of premium and economy travel in February, indicating not only an upturn in international air travel but also over the increasingly positive economic environment. In its assessment of premium and economy travel for February IATA has reported that in December the number of passengers flying in premium first and business class seats rose 5.9% and economy travel was up 6.9% compared with the same month last year.

Although it explains the decline in premium and business travel passengers might be cyclical IATA says that it is now moving into the upturn phase of the cycle and there may well be a significant change in the element as premium travel now looks up with world trade with growth in total international passenger numbers. Stating that the year-on-year numbers indicate a strong upturn in longer-haul markets like Europe, where international passenger kilometres flown rose at a much faster rate of 9.5% in February, are recovering faster than the short-haul markets. Total international passenger numbers rose by 6.8%. But although premium travel is up 10%, the air travel markets had still not recovered to early 2008 levels by February, IATA states.

Though premium revenues rose an estimated 9.4% in February as rising average fares add to the growth in premium passenger numbers, IATA expressed its concerns over the continuing trend of premium travellers trading down to economy, sharing its disappointment at weak consumer confidence. Economy travel is often associated with leisure but increasingly this seat class is driven by business travel, it said.

Mapping the changes in the geographical market, IATA says that upturn remains very different in different markets, which throw ample light on individual pace of economic recovery in different countries. The strongest markets are within Far East, South America, the Middle East and across the South Atlantic, while Europe, across the North Atlantic, Pacific and in Africa remain the weakest market areas.