The major contributor to the August industry figure (about 40%) was the Within Europe market, which includes connecting segments of longer-haul travel.
Key points:
- Passenger travel on international markets was up 5.4% in August year-on-year, reflecting strong growth on the Within Europe travel market;
- Both travel classes showed an above-trend rise in August year-on-year – premium travel was up 5.3% and economy travel rose 5.4%;
- Economy class travel – the more price sensitive travel market – has experienced stronger growth so far this year, supported by lower fares over recent months;
- Growth in premium international travel has been subdued due to weakness in business travel demand drivers, particularly in emerging markets;
- The major contributor to the August industry figure (about 40%) was the Within Europe market, which includes connecting segments of longer-haul travel;
- Growth in premium travel across the North Atlantic also started to accelerate, up 6.8% in August, which is a good sign for yields and revenues;
- The strength of air travel activity within Europe was more than enough to offset weakness in other markets, most notably in Asia;
- Looking ahead, if we extend the current trend in volumes through to the end of 2015, we could see year-on-year growth in the solid range of 4-5%;
- This growth, however, is narrowly based and largely driven by travel Within Europe and across the North Atlantic;
- With slowdown on key markets like Within Far East, as well as continued weakness in business confidence and world trade, the outlook for international air travel growth remains fragile.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
