Key points from IATA’s report on premium and economy travel in June:
* Premium travel was 4.3% higher than the same month a year earlier, compared to 1.7% in May;
* But a closer look at the data shows that this improvement was small – the level of premium passenger numbers in June was no higher than the level reached in March;
* The fall of world trade in recent months and the decline in business confidence are likely to have reduced business travel;
* In contrast, total international travel continues to increase, with the number of passengers 6.2% higher in June than a year ago;
* However, 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 travelers, with the seat class mix deteriorating further in June;
* But the primary source of the slowing growth trend is weakness in European markets – 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;
* Indicators of premium travel demand, world trade and business confidence, point to further weakness in coming months.
