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Premium airline revenues and traffic remain below pre-recession peak, 'rapid' recovery in 2010

Analysis

Premium airline revenues remain 18% lower than their 2Q2008 peak with premium traffic 11% below the pre-recession levels according to IATA. Premium revenue grew an estimated 15% in 2010 after slumping 27% in 2009 with revenues continuing to grow at a faster pace than passenger numbers as fares continue to increase. Premium travel traffic rose by 9.1% in 2010 while economy travel increased 5.9%. Premium traffic is expected to "see further robust growth" and continued momentum over the coming months with some further yield increases likely during 1Q2011.

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