Growth in the number of passengers traveling in premium seats on international markets moderated in February, rising 4.1% compared to a year ago, down on the January rise of 6.1%. Although the demand backdrop for premium travel remains broadly positive, rates of improvements in business conditions have slowed.
Key points of IATA Premium Traffic Monitor – February 2014:
- Premium air travel increased 4.1% in February year-on-year, a moderation on January growth of 6.1%;
- Demand drivers remain broadly positive, but rates of improvement in business conditions have slowed;
- Business activity indicators still indicate growth, but the rate in March was the slowest for the last 4 months;
- Some major economies, like the US, experienced temporary Q1 slowdown due to severe weather conditions;
- But in China, business (manufacturing) activity has contracted since January, pointing to a more fundamental deceleration;
- The within Far East market increased only 1% in February year-on-year, significantly down on January growth of 7.2%;
- This result reflects little or no bias from the Chinese New Year – negative impacts occurred in the same month in 2013/14;
- By contrast, the North Atlantic market managed to maintain recent improvements, rising 3.8% in February;
- The outlook for premium travel markets is broadly positive, but recent developments could restrict further acceleration;
- The degree of weakness in some emerging markets will likely determine the pace of future expansion.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
