IATA's assessment of premium and economy travel in November.
Key points:
- Growth in international air passengers rose 3.6% in November compared to a year ago, showing no improvement on October’s performance (a 3.7% increase). Consistent with weakening global business conditions, these results suggest that growth in international air travel is stalling;
- International air travel volumes, as shown in the first chart below, indicate a flattening in the growth trend in both economy and premium passenger numbers over the recent past. This development reflects a gradual slowdown in improvements in business confidence throughout H2 2014, with economic conditions in the Eurozone and China deteriorating;
- Nonetheless, travel within Europe itself performed well overall in November with a 4.9% rise compared to a year ago. Much of that growth, however, took place in economy class travel (up 5.2%), partly driven by business travelers substituting away from premium seats (up 0.9%) as a means of cost cutting;
- Stronger growth in total international travel was inhibited by other markets where expansion remained robust but below trend. Examples include international travel on Europe – Far East, Europe – Middle East and Middle East – Far East;
- The outlook for international air travel remains positive overall, but recent slowdown in major economies like China and the Eurozone could place downward pressure on demand in coming months. Moreover, although growth in world trade has been supportive of business-related air travel over recent months, gradual easing in business confidence since mid-2014 suggests the improvements in international trade could be limited.
IATA Premium Monitor Nov. 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.
