IATA: How well did premium and economy travel in July do?

IATA - Copy_2
IATA - Copy_2
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Written by Linda Hohnholz

IATA released it’s assessment of premium and economy travel in July.

Key points:

IATA released it’s assessment of premium and economy travel in July.

Key points:
Growth in international air passengers was weak for a second consecutive month with a 2.6% increase in July compared to a year ago โ€“ premium seat numbers rose only slightly more, 3.0%;
Although international air travel was 3.6% higher in July year-to-date, passenger numbers have contracted slightly between December and July;
Part of the โ€˜year-to-dateโ€™ growth took place last year, when business activity and trade grew strongly;
And while there was some (albeit slower) growth between December and May, there has been a notable weakening during the last two months, flattening the growth trend in international passenger numbers in 2014;
This weakness comes despite recent improvement in trade and business confidence, which both weakened in Q1;
The slowdown is largely limited to the within Far East market and markets connected to South America;
Economic and politic turmoil in Thailand has damaged tourism demand over recent months and Malaysia air travel has been impacted by tragedies related to the flag carrier;
The North America โ€“ South America market has been hit by capacity cuts to Venezuela as well as weakness in key economies like Brazil and Argentina;
By contrast, longer-haul markets have been performing strongly, which has supported yields and explains why international RPKs are growing much faster than passenger numbers.

About the author

Avatar of Linda Hohnholz

Linda Hohnholz

Editor in chief for eTurboNews based in the eTN HQ.

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