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IATA : Premium Traffic Monitor - August 2010

posted Oct 14, 2010, 6:14 AM by Elaine Bell   [ updated Oct 14, 2010, 6:20 AM ]


Premium Traffic Monitor - August 2010

Released 14 October 2010

Key points from our full report on
premium and economy travel in August:



  • There are clear signs now that the post-recession rebound of international air travel is slowing;
  • In August passengers traveling on premium seats were 9.1% higher than a year ago, compared with 13.8% in July;
  • Those traveling in economy were 6.2% up, compared with 8.8% in the previous month;
  • Much of this slowdown was due to the strong rebound in August last year, but the level of travel slipped between July and August;
  • Premium travel has now risen 17% above its 2009 low;
  • But 99% of that rise had happened by March - in the following 5 months there was little further month-to-month growth;
  • Premium markets are still 11% smaller than their pre-crisis size in early 2008, although economy travel has risen 5% above its pre-crisis peak;
  • Average premium fares have also started to lose impetus and premium revenue growth is estimated to have slowed to around 15% in August;
  • We estimate that premium revenues are now 30% above lows but still over 20% smaller than pre-crisis markets;
  • Leading indicators of business travel are slipping but are still positive;
  • We do not think the expansion is over yet but air travel has clearly entered a slower growth phase.

- IATA Economics -

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