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September 2022, Virtual
September 29 2022, Virtual
Growth in premium air bookings has picked up this summer as the eurozone has began to stablise after years of economic turmoil, according to the latest figures from IATA.
The overall business class market rose by 4.1 per cent in June compared to the same month last year. This was also a significant improvement on the 2 per cent growth in premium demand seen by airlines during May.
IATA said that the premium air market had been “subdued” during the first half of 2013 when demand grew by 3.2 per cent, compared to a rise of 4.8 per cent throughout 2012.
“In July, however, there was a small improvement in business confidence and export orders compared to June,” said IATA in its Premium Traffic Monitor report. “A majority of that improvement was driven by better indicators in advanced economies, including the eurozone where signs of stability have been developing over recent months.
“This improvement has helped support continued growth on markets linked to the region, with premium travel on Europe–Middle East and Europe–Far East expanding 6.5 per cent and 5.1 per cent in June respectively. If current trends continue, growth in these markets should remain solid.”
Premium air travel within the Far East rose by 9 per cent during June compared to a year ago but IATA warned that the region’s economic fundamentals had been “weak” in recent months.
“China’s economy and Asian trade have both slowed this year – so it is not clear if this pickup in growth will be sustained or it is largely due to volatility in travel volumes. Moreover, growth in premium travel within the Far East expanded 6.2 per cent in June year-to-date, about a third down on growth throughout 2012 (9 per cent),” said IATA.
“There was a slight reduction in the rate of decline in China’s export orders in July, but levels remain in decline for the fourth consecutive month. Developments in the Chinese economy in the months ahead will help indicate the pace of growth in air travel in the region.”