Recent improvements in premium travel across the North Atlantic have continued into 2014, with a strong 5.0% increase in January year-on-year. This market contributes most to total international premium revenues, and current growth rates (which are double 2013 expansion of 2.4%), should help support airline financial performance.
Key points:
- Premium passenger numbers rose 6.1% in January, a strong result up on 2013 growth (4.2%);
- Growth in premium travel has been supported by positive developments in the business environment;
- Improvements in advanced economies have helped global business confidence reach 3-year highs;
- As a result, travel on key markets like the North Atlantic continues to accelerate, rising 5% in January;
- But the largest contributor to the strong growth in January was premium travel within the Far East (up 7.2%);
- Growth in Asian trade activity over recent months has helped support international business and premium travel;
- The outlook for premium travel is broadly positive, but improvements in key drivers have slowed slightly;
- Business confidence and export orders have increased little in 2014, reflecting weakness in some emerging markets;
- Nonetheless, performance of advanced economies should sustain premium travel in the months ahead.
IATA Traffic Monitor Jan. 2014
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
