IATA: October premium traffic remains flat
Published: December 29, 2011
IATA reported that international premium traffic rose just 0.1% year-over-year in October, after a 6.7% growth in September ( ATW Daily News, Nov. 25 ), that is “consistent with weaker trade and confidence indicators,” IATA said in its latest premium traffic monitor.
Economy travel was 4% higher than October 2010. “Because the stronger growth in economy travel has occurred in sectors of weaker economic performance—within Europe and Europe to Far East—it is probable there has been a degree of substitution away from premium travel to economy, as a means of businesses cost-cutting in difficult economic situations,” according to IATA.
The strongest premium traffic growth in October was recorded on the Africa-Southwest Pacific routes, which reported a 31% growth year-over-year. IATA said the economy in the African region continues to show good growth owing to a “strong domestic demand and high commodity prices.” Next highest growth rate was on Central America-South America routes, which reported a 25.1% growth year-over-year.
The worst performing routes in October were on Europe-Africa routes, declining 10% year-over-year, followed by routes within Central America, (down 6.7%), and routes within the Southwest Pacific (down 6.6%).