Attached for your consideration is the latest International Air Transport Association (IATA) assessment of premium and economy travel based on traffic and ticket sales in January 2010.
Key points:
- Total passenger numbers on international travel markets were up 5.7% in January on a year earlier, following the 3.7% decline in 2009;
- Both premium and economy travel rose at similar year-on-year rates in January, 5.5% and 5.7% respectively;
- However, compared to recent low points in 2009, premium travel has risen the most, by 9.4%, compared with economy, which is 6.9% above its low;
- But premium travel has the furthest to go, needing to rise another 16% to reach early 2008 peaks - economy travel is just 3% below its previous peak;
- Fares are also rising and are up 10% from mid-2009 lows, so revenues have risen 20% but premium revenues are still 30% down on early 2008 highs;
- Big geographical differences in market strength remain with the Far East and South America showing the strongest upturns;
- Premium travel continues its structural decline on the short-haul markets in Europe, but is showing a cyclical upturn elsewhere;
- Pacific and North Atlantic markets are seeing some premium upturn but are generally sluggish, whereas South Atlantic premium travel is up strongly;
- Looking ahead the world trade upturn, which is driving business travel, looks set to continue but low consumer confidence remains a concern and risk.
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