CWT - Industry Trends/Innovations

Industry Trends/Innovations

Demand for premium airline travel down in early 2009

The International Air Transport Association (IATA) monitors key statistics regarding premium air travel on a monthly basis. April 2009 figures indicate the number of passengers traveling on business- and first-class tickets fell 22 percent* as compared to April 2008, following a 19.2 percent fall during the first quarter.

According to Giovanni Bisignani, Director General and CEO of IATA, “Business travel is highly sensitive to problems in the economy and fell fast. Ticket numbers for business and other premium travel had already turned negative by the middle of 2008. Evidence indicates that many business travelers shifted to the back of the aircraft if they didn’t cut travel altogether.”

Air travel has become more affordable in early 2009, with “emerging excess capacity and intensified competition driving economy fares down 15 percent and average premium fares down over 20 percent.”

Complete details of the IATA findings can be accessed on the IATA Web site.

*Note: In 2009, the Easter holiday fell in the month of April, while it fell in the month of March for 2008. IATA estimates that this may have cut premium travel by 5 percent.

Sources: iata.org, Seattle Times