17-Jun-2010 10:45 AM

Economic concerns in Europe to weaken premium travel demand: IATA

IATA stated that government spending cuts in Britain, Germany, Greece, Portugal and Spain, falling consumer confidence and debt worries across Europe will likely weaken demand for premium air travel from the continent (Reuters, 16-Jun-2010). IATA also described the disruption from Iceland's erupting volcano as a temporary blip in Apr-2010, with demand showing signs of a "strong" rebound in May-2010. The Association estimated the disruption grounded 29% of global passenger capacity at its peak.