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Posted on: February 18th, 2010 by Tiffany Propst
Due to the recession, the International Air Travel Association now says that premium air travel has been set back almost six years of growth. The association went on to reveal that numbers of premium passengers on international flights grew 1.7 percent year over year in December 2009. This is the first year over year rise in premium travel since May 2008. However, the longer term picture is considered very grim.
The International Air Travel Association said that even though premium travel has risen 11 percent since May of 2009, December 2009’s levels are still 17 percent below the record high in 2008. The association explained that with six years of lost growth, there is still a very long way to go despite the strong upturn seen since last May.
The organization, which is based in Montreal, noted that 2009 was a year of two distinct halves. The final stages of a severe recession impacted the first half and then the post recession upturn took the second half back up. May of 2009 marked the low point for premium travel, when numbers where 25 percent down on early 2008 levels.
The International Air Travel Association did say that the decline may have been cyclical, but it is revenue that matters for the airlines. There are more grounds for thinking that there may be a structural decline in yields for premium seats. Average premium fares are still 20 percent lower than they were in the second quarter of 2008.
Of course, there are some regional differences in the premium market upturn. Routes covering the Far East were up 14.5 percent in December of 2009. South Atlantic premium travel rose 7.7 percent as well.