According to IATA’s Premium Traffic Monitor for November 2013, international premium air travel recorded a solid rise in November, with passenger numbers up 5.4 per cent compared to a year ago. This is in line with the October result (5.6 per cent), but is above growth year-to-date (4 per cent), which indicates that premium travel demand has accelerated over recent months.
Growth in premium travel has been supported by positive developments in the business environment over recent months. Global business confidence is the strongest it has been since Q1 2011, with Europe and the United States both showing signs of economic improvement. In addition, business-related premium travel is being supported by a recent pick-up in trade growth, particularly in the US and Asia.
By contrast, growth in economy class travel was relatively weak in November, the monitor said, citing a rise of 2.4 per cent compared to a year ago. The weakness is in part a result of a slowdown in growth of economy class travel in the Far East, which was up just 3.7 per cent in November year-on-year, compared to 6.8 per cent in October. Major regional economies like China continue to experience robust economic growth, but indicators suggest a slowdown during 2013 year-end, with measures of consumer confidence also showing decline in December.
Business confidence continues to improve, which also suggests a pick-up in the growth of premium travel. The second chart below shows business confidence (measured here by the JP Morgan/Markit purchasing managers’ index), and its steady, continued increases throughout the second half of 2013. The improvement reflects better performance of advanced economies, and more recently a pick-up in emerging Asia.
