Decline slowing in Europe - IATA
The decline in premium traffic and revenue accelerated in February, a report by the International Air Transport Association (IATA) said today (April 16).
Premium traffic fell 21.1% in February following from the 16.7% decline seen in January, while revenues fell 30%.
IATA said a slower 8.3% decline in economy traffic last month suggested that business travellers are continuing to "trade down to cheaper seats."
A 15% growth in revenues last February, boosted by double-figure fare increases, was in stark contrast to this year's cuts in ticket prices.
"This revenue stream is key for the profitability of most network airlines and so this reversal will be putting significant pressure on first quarter financial performance," said IATA.
Europe to the Far East was the only major route to show a slow in decline, the "first tentative sign of a floor in major markets."
The decline slowed from 21.2% in January to 19.6% in February, not factoring in the leap year.
"Some further decline in premium travel during the next few months is likely before the bottom to this cycle is reached," IATA added.
Total passenger numbers fell 9.6% in February, or around 6% after adjusting for the leap year.
"Average travel distances are now getting shorter as long-haul international markets suffer most, as a result of the unprecedented collapse in world trade and investment flows," said IATA.
Pacific and North Atlantic routes suffered the worst declines in premium travel of 27.3% and 22.5% respectively.
Africa was the only region to show growth in premium traffic with a 2.8% increase.
www.iata.org