Premium class air travel declines in September

The number of airline passengers travelling in premium classes fell by eight per cent in September, due to the worsening global financial crisis and its impact on the confidence of the business sector, according to a report by an industry trade group.

Europe, Japan and the U.S. were particularly hard hit, according to data released by the International Air Transport Association (IATA), which reported on passenger traffic in business- and first-class around the world.

The IATA report added that business confidence fell sharply in October, and with conditions worsening in the financial sector it is likely that there will be a further decline in premium-class travel.

September’s decline followed a decrease in August of 1.5 per cent, and constituted the third month in a row of falling premium-class traffic. For the first half of 2008, there was a 1.5 per cent growth in premium travel, according to the IATA.

The trend is bad news for airlines, which typically see profitability driven by business travel.

Passenger numbers in economy class also fell in September, down by four per cent, IATA reported, and the number of passengers travelling in all classes dropped by 4.4 per cent for the month.

IATA noted that the decline in premium traffic is expected to cause a standstill in growth in revenue growth for the sector.

www.iata.org