Travel Forum / Travel Types / Air Travel / May 2008

International air travel declines

Posted on: May 28th, 2008 by Jean Adams

 The number of people travelling internationally in business class and first
class cabins has dropped more dramatically than at any other point over the
course of the past five years, according to a study conducted by the
International Air Transport Association (IATA). The number of passengers in
premium cabins dropped by 8.5 percent in March, compared to figures from the
previous year, while passenger numbers declined by 3.9 percent
internationally. These sobering figures serve as the most recent evidence
that the current US recession and the economic slowdown in the United
Kingdom and parts of continental Europe are having a negative effect on air
travel. Yet the decrease in the number of passengers travelling in premium
cabins is especially worrisome for airlines, which rely on passengers who
pay higher fares to turn a profit. With the number of leisurely passengers
also expected to drop, due in part to hikes in ticket prices, many
commercial airlines are going to find it increasingly difficult to battle
the dramatic surge in the cost of jet fuel.

Steve Lott, an IATA spokesperson, noted that ³airline executives get
concerned when they start to see falling traffic in the front of the plane
because it¹s the premium passengers that represent valuable revenue.² Lott
also suggested that some of these businesspeople may not have given up on
flying altogether any may not have cancelled their business trips, but have
perhaps decided to cut costs by flying in economy.