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Thursday, July 16, 2009 (AP)
IATA: Premium air travel down 23.6 percent in May



(07-16) 10:00 PDT MINNEAPOLIS, (AP) --
Global airline passenger travel dropped faster in May than in the previous
months, a trade group reported on Thursday, suggesting that things are not
getting better for air carriers.
The number of passengers flying on premium tickets fell 23.6 percent in
May compared with May 2008, according to the International Air Transport
Association. That follows a 22 percent decline in April. Meanwhile, the
number of passengers flying coach fell 7.6 percent, after growing 0.3
percent in April.
Travel in first- and business class is only 7 percent to 10 percent of
overall airline travel, but accounts for up to 30 percent of passenger
revenue. Airlines tend to make the most money on those passengers, or at
least not lose as much as they do on cheaper tickets. And in May, revenue
from those premium seats fell 40 percent to 45 percent, IATA said.
International travel fell 9.2 percent in May, the biggest year-over-year
drop so far in 2009.
Airlines are luring remaining travelers with steep discounts, even in the
front of the plane. Discounts in coach have been common, but even premium
fares were running around 20 percent lower than last year through April,
according to IATA.
"This is likely a sign that airlines are seeking to generate any cash they
can by filling these seats," IATA wrote in its report.
Premium traffic in the North Atlantic was down 16.5 percent in May. Travel
across the North and Mid-Pacific was down 30.7 percent, and travel within
Europe was down 30.6 percent.
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Copyright 2009 AP