IATA: Premium traffic decline to continue, European weakness could spread to other markets

IATA reports (17-Sep-2012) the following premium and economy traffic growth highlights by region for Jul-2012:

• Premium traffic:
• Total international: -0.5% year-on-year;
  • Within Africa: +5.5%;
  • Within Far East: +3.0%;
  • Within Middle East: -6.4%;
  • Within North America: +6.3%;
  • Within Southwest Pacific: -14.7%;
  • Within Europe: -3.5%;
• Economy traffic:
• Total international: +3.0%;
  • Within Africa: +5.5%;
  • Within Far East: +5.8%;
  • Within Middle East: -3.5%;
  • Within North America: -1.7%;
  • Within Southwest Pacific: -4.7%;
  • Within Europe: +3.3%. [more - original PR]

IATA: "The second half of 2012 began with further signs of weakness in air travel markets. The number of passengers buying premium seats on international markets has contracted - shrinking 0.5% in July compared to the same month last year, after expanding by 4.3% in June. The size of the economy class market was 3.0% larger in July compared to a year ago, but significantly down on the June growth of 6.2%. Nevertheless, after signs of faster growth early in 2012, the expansion in premium travel has now clearly flattened out. In coming months, the degree of weakness in air travel, particularly in premium markets, is likely to intensify as business confidence signals decline and conditions in Europe remain bleak. There is also a possibility, given early signs of softness in July on some routes, that the weakness in Europe could spread to other markets." Source: Company statement, 17-Sep-2012.