22-Aug-2013 12:10 PM

IATA: Premium traffic picking up in Jun-2013 after subdued growth over 1H2013

IATA reported (20-Aug-2013) that air travel markets stabilised in Jun-2013 after signs of deterioration in recent months, with premium passengers on international markets up 4.1% year-on-year and economy passengers up 4%. IATA reported in Jul-2013, there was a slight improvement in business confidence and importantly a rebound in export orders, which is a positive sign for world trade growth in months ahead. Over 1H2013, premium air travel has been subdued, up 3.2, with weaker rates of growth in premium air travel over recent months seeing the share of premium passengers from total international travel slip slightly. The slip is due to the business environment: global business confidence had started to increase strongly in late 2012 and into early 2013, but over the past several months, business sentiment had flatlined. Traffic highlights by major route for Jun-2013:

  • Far East premium travel recorded a “solid” 9.0% increase, a “notable improvement relative to weaker performance in the recent past”. With regional fundamentals weak due to the slowing of China’s economy and Asian trade, it is not clear if this pickup in growth will be sustained or if it is largely due to volatility in travel volumes
  • North America-South America market saw 10.2% premium travel growth, due to the regional economies and high trade momentum supporting business and leisure travel;
  • Europe-Middle East and Europe-Fast East premium traffic expanded 6.5% and 5.1% in Jun-2013, respectively. If current trends continue, growth in these markets should remain solid, with the latest figures showing the Eurozone’s 18 month-long recession ending in 2Q2013;
  • No significant improvement in premium travel within Europe, with growth of just 1.7% in June year-on-year;
  • Africa-Middle East premium travel markets recorded the strongest rise in routes in Jun-2013, up 21.3%. While air travel in both regions is supported by solid economic and trade growth, the sharp rise in premium travel in Jun-2013 could be reflecting a pick-up in business travel prior to the start of Ramadan in Jul-2013. [more – original PR]

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