Geneva - Premium travel was 4.3% higher than the same month a year earlier, compared to 1.7% in May but but a closer look at the data shows that this improvement was small as the level of premium passenger numbers in June was no higher than the level reached in March, according to figures published by the International Airline Travel Association (IATA).
The fall of world trade in recent months and the decline in business confidence are likely to have reduced business travel; in contrast, however, total international travel continues to increase, with the number of passengers 6.2% higher in June than a year ago. This solid performance is being supported by economy seat sales, which were 6.4% higher in June than a year ago, rather than premium travel demand. Some of the weakness in premium markets could be due to a shift to cheaper economy seats by business travellers, with the seat class mix deteriorating further in June. But the primary source of the slowing growth trend is weakness in the European markets as premium travel within Europe and across the North Atlantic declined again in June.
Air travel growth in regions not connected to Europe – Middle East, Far East, North and South America - was solid overall and indicators of premium travel demand, world trade and business confidence, point to further weakness in coming months.