The economy appears to be diminishing the demand for First and Business-Class tickets. That’s what latest numbers from the International Air Transport Association (IATA) (Web site: www.iata.com) strongly indicate.
IATA says premium class passenger ridership was down by 1.5 percent in August; economy travel off a far milder 0.1 percent.
Hardest hit was premium travel within and to the Far East. It was down a significant 7.8 percent in August within Asia. Interestingly, however, transatlantic, African, Middle Eastern, and South American premium class travel actually increased by 4.1 percent.
IATA’s Premium Traffic Monitor concludes: “Prospects for business travel look very depressed, with financial sector collapse and the likelihood of recession in major economies.”
A Cheapflights’ observation: look for airlines to react in one of two ways, perhaps both. First, there could well be a further curtailment of flights. Second, there’s a possibility of more Business-Class deals. Airlines are loathe to let seats push back from the gate empty, especially premium class seats. International airlines in particular have got to fill them to make money. That could drive some decent discounts up front, behind the curtain.
© Cheapflights Ltd Jerry Chandler
