The current slump in premium air travel worldwide may continue to accelerate this year after plummeting for the seventh straight month in December, the International Air Transport Association said.
The number of passengers with first- and business-class tickets fell 13 percent in December from a year prior, the Montreal- and Geneva-based industry group said today in a report on its Web site. Premium air travel fell 2.9 percent in 2008 as the collapse in demand canceled out growth earlier in the year.
Inability of airlines to cut capacity as quickly as declining demand is causing yields, or average fares, to slump, the organization said. IATA estimated that a 20 percent decline in premium fares will slash about 3 percent, or $15 billion, from airline revenue globally.
“It seems that the bottom has not yet been reached for air travel, and even weaker numbers may become evident in the first few months this year,” IATA said.
Declines in premium traffic were led by Asia, with travel in the Far East declining 25 percent and across the Pacific 20 percent. Premium travel in Europe fell 16 percent, while across the Atlantic it was down 8.8 percent.
Source: Blomberg
