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Premium passenger numbers up at slower rate

Dec 18 2014 16:29

Geneva - Growth in international air passengers rose 3.6% in October compared to a year ago, according to a report by the International Air Transport Association (Iata).

This is in line with growth year-to-date, and stronger than the September rise of 2.3%.

Premium passenger numbers were up at a slower rate (2.9%) in October than economy class passenger numbers (3.7%), according to Iata's latest Premium Traffic Monitor.

Growth so far this year in premium and economy class air travel has equalised. As a result, there has been no further increase in premium's share of total traffic, which could suppress growth in premium yields and revenues.
 
Several markets showed improvement in October compared to a year ago. The within Far East market recorded a stronger rise in October, up 2.9%, compared to the trend so far this year (0.4%).

Trade in emerging Asia has been growing solidly over recent months, which has provided a boost to business related air travel.
 
In addition, despite the recent weakening of the eurozone economy, air travel within the region rose 4.7% in October year-on-year, almost a percentage point above the trend growth so far this year.
 
"The outlook for international air travel remains positive overall, but a recent slowdown in major economies like China and the eurozone could place downward pressure on demand in coming months," according to Iata.
 
"Moreover, although growth in world trade has been supportive of business-related air travel over recent months, a lack of improvement in business confidence since mid-2014 suggests further gains in international trade could be limited."

iata  |  aviation  |  travel and leissure
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