IATA Reports 13.3 Percent Drop in Premium Traffic

IATA’s latest “Premium Traffic Monitor” shows that premium travel declined by more than 13 percent in December, and it looks as though even larger declines in air travel should be expected early this year. U.S. airlines, which switched capacity to long-haul international markets looking for better yields, now face a tough environment.

There was a further decline in premium traffic in December to a level 13.3 percent lower than a year earlier, following November’s 11.5 percent decline. Premium traffic across the North Atlantic was down 8.8 percent in December, down 19.7 percent across the Pacific and down 6.9 percent to South America.

Asia continued to show the greatest weakness for premium travel, which was 25.1 percent down within the region. Passenger numbers on economy tickets was down 5.3 percent in December, a little less than November’s 6 percent but due to pre-booking in less recession-stricken times.

The precipitous decline in premium travel during the last four months of 2008 meant the total for the year fell 2.8 percent. Economy travel was up 0.9 percent and, since this forms more than 90 percent of total passenger numbers, led to total passenger numbers rising 0.5 percent in 2008.