Rebound of international air travel slowing

IATA’s August Premium Traffic Monitor for airlines shows that the post-recession rebound of international travel is slowing.

In August the number of passengers travelling on premium seats was 9,1% higher than the same month last year, compared to 13,8% in July. Passenger numbers travelling in economy were up 6,25% compared with 8,8% in July.

Iata said around two-thirds of the fall in the year-on-year comparison was due to a large monthly rise in August last year, as the post recession rebound in travel markets took hold.

Premium travel has now risen 17% above its 2009 low point but 99% of that rebound had occurred by the end of the first quarter of this year. In the five months since then the number of passengers travelling on premium seats has levelled off and appears to have stopped improving.

“Whether this is a temporary pause remains to be seen. Business confidence is slipping, but remains positive,” Iata said in a statement.

Premium markets are still 11% less than their pre-crisis size in early 2008.

Economy travel has only risen 11% from its 2009 low, but its fall was less dramatic and this segment, which also includes premium economy seats, is now doing better than premium. Passenger numbers in this seat category are now above their previous pre-crisis highs. However, even in the segment, 95% of the rebound had occurred by the end of the first quarter. In the past five months, economy travel has grown just 0,6%.