Premium Traffic Monitor (October 2011)

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.

IATA Airlines Premium Traffic Monitor (October 2011)