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Premium Traffic Monitor (October 2011)

  • 16th December, 2011
  • Last updated at 18:04
  • Posted in aviation
  • Comments: Off
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Released by IATA, on December 15th 2011, the key points from their report on premium and economy airline travel in October 2011.

  • Premium passenger numbers on international markets fell sharply in October;
  • Compared to a year ago premium travel was just 0.1% higher in October, compared with 6.7% in September;
  • IATA interpret this as being mostly due to business travellers shifting to cheaper seats, since in October economy travel was up 4&percent; on last year;
  • The share of premium paying passengers in total air travel fell sharply in October, to a level not far above the lows reached in 2009;
  • Driving this weakness has been an end to the growth of world trade in recent months and a sharp fall in business confidence;
  • Notable weakness in premium travel was seen on the previously strong within-Europe and Europe-Far East route segments;
  • However, economy travel was strong on these routes, reflecting the shift in business travel, but so far not full extent of the Eurozone crisis;
  • Yields will be undermined by the shifting seat class mix which, with still high fuel prices, will make Q4 more challenging for airline profitability than Q3.

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