According to the International Air Transport Association (IATA) international passenger travel on international markets increased by 4.6% in February compared to the same period one year ago – a healthy rise on the 3.7% January result.

 

IATA says it was the economy class level of travel which drove February’s rise, up 4.8% year-on-year, aided by falling fares. But it adds that the acceleration in the year-on-year comparison is also partly due to the Lunar New Year occurring one month later in 2015 (in February). IATA said that the Lunar New Year ‘tends to give a boost to holiday-related leisure travel’.

 

 

PREMIUM TRAVEL GROWTH TREND ENDS

In its report today, it said: “The growth trend in premium international passenger travel has flattened over the past several months.” It added that premium international air travel volumes have also failed to increase since August 2014. It says there was also a weak 2.3% rise in premium travel in February year-on-year.

 

“This development reflects a lagged response to the gradual slowdown in improvements in business confidence throughout half year two 2014, with economic conditions in some emerging markets deteriorating. The within Europe travel market was particularly weak in January, up just 0.3% for premium class and 1.6% for economy – notably slower than the trend in 2014, which averaged close to 4% overall.

 

 

 LONG HAUL PERFORMS BEST

“By contrast, longer-haul markets continue to perform relatively more strongly, including the Middle East to the Far East/Europe and North and Mid Pacific, which explains why international RPKs expanded at a much faster pace than passenger numbers.

 

“Latest data shows there are signs of a pick-up in business confidence in the Eurozone and US, which could help ease some of the downward pressure on business-related international air travel in coming months.”

 

 ‘POSITIVE MOMENTUM’ FAILS TO CONTINUE

IATA explains that international air passenger volumes reveal a flattening in the growth trend, particularly for premium passenger numbers. It says there are also signs of stronger growth in Q3 2014, after a period of notable weakness mid-year, but that positive momentum has slowed again.

 

Premium international air travel volumes have not increased since August 2014, says IATA: “This weakness is consistent with a lagged response to the waning business confidence throughout half year two, 2014. That said, data reported throughout Q1 by JPMorgan/Markit show there are signs of a pick-up in business confidence in the Eurozone and US, which could help ease some of the downward pressure on business-related international air travel in coming months.”