IATA released an assessment of premium and economy travel in May.
Key points:
Growth in premium travel accelerated in May, rising 6.5% year-on-year, compared to 3.8% in April;
Demand conditions are picking up again, after signs of wavering during recent past months;
Recent data shows easing downward pressure from emerging markets, particularly China;
But indicators of trade in Asia remain volatile, suggesting the outlook for regional business travel is uncertain;
The within Far East premium travel market increased by a weak 2.6% in May year-on-year;
Other markets, however, experienced solid growth – the North Atlantic route increased by a strong 10.3%;
Latest data point to a significant reversal in Q2 GDP growth in the US, after weather-related weakness in Q1;
The outlook for air travel is positive – global business activity (manufacturing + services) is now at a three year high;
But growth in manufacturing and export orders, specifically, is yet to recover to 2013 year-end rates;
This places some doubts over strong acceleration in trade and business-related demand in the near-term.