International air travel declines

The number of people travelling internationally in business class and first class cabins has dropped more dramatically than at any other point over the course of the past five years, according to a study conducted by the International Air Transport Association (IATA). The number of passengers in premium cabins dropped by 8.5 percent in March, compared to figures from the previous year, while passenger numbers declined by 3.9 percent internationally. These sobering figures serve as the most recent evidence that the current US recession and the economic slowdown in the United Kingdom and parts of continental Europe are having a negative effect on air travel. Yet the decrease in the number of passengers travelling in premium cabins is especially worrisome for airlines, which rely on passengers who pay higher fares to turn a profit. With the number of leisurely passengers also expected to drop, due in part to hikes in ticket prices, many commercial airlines are going to find it increasingly difficult to battle the dramatic surge in the cost of jet fuel.

Steve Lott, an IATA spokesperson, noted that “airline executives get concerned when they start to see falling traffic in the front of the plane because it’s the premium passengers that represent valuable revenue.” Lott also suggested that some of these businesspeople may not have given up on flying altogether any may not have cancelled their business trips, but have perhaps decided to cut costs by flying in economy.

www.iata.org