IATA: Positive economic signs give better outlook for premium travel

IATA reported (19-Sep-2013) the following premium and economy traffic growth highlights by region for Jul-2013:

• Premium traffic:
• • Total: +1.4% year-on-year;
  • • Within Africa: -2.1%;
    • Within Far East: +5.5%;
    • Within North America: +4.2%;
    • Within South America: +7.0%;
    • Within Europe: stable;
• Economy traffic:
• • Total: +2.3%;
  • • Within Africa: +5.6%;
    • Within Far East: +3.2%;
    • Within North America: -1.2%;
    • Within South America: +7.4%;
    • Within Europe: +2.4%.

IATA stated growth in premium air travel during Jul-2013 continued recent "sluggish" expansion, but there were "more positive signs of faster growth in business travel in the months ahead". Details include:

• Traffic performance: International premium passenger numbers in Jul-2013 rose at a similar rate year to date growth, after accounting for the impact of holidays. Slower year-on-year growth in Jul-2013 is a result of the timing of Ramadan, which took place mostly in July this year, a month earlier than in 2012. In the absence of this seasonal impact, growth in premium travel in Jul-2013 would be close to performance seen so far this year. However, this growth rate is still slower than performance of premium travel markets in 2012, primarily due to developments in the business environment. Global business confidence had been flat for the majority of 2013 and world trade growth has slowed; growth in premium travel has weakened accordingly. There has been, however, modest improvement in business sentiment in 3Q2013, which should support business travel growth in the months ahead. In the advanced economies, there are early signs of this improvement;
• Economic outlook: Outlook for the global economy is cautiously optimistic. Business confidence is increasing at the fastest pace since mid-2011, led by improvements in Europe and the US. There has also been a rebound in export orders, which is a positive sign for world trade growth in months ahead. If this positive momentum is maintained, air travel demand will continue to grow and could see some acceleration late in the year. Premium travel markets are driven largely by demand for business travel. [more - original PR]