Premium Air Travel Growth Slackens in March: IATA

Growth in the number of business class or premium travellers, which is a good indicator of airline industry's revenue earning capacity, slowed to 2.2 per cent in March compared to 4.1 per cent in February, data analysed by the International Air Transport Association (IATA) showed.

A notable part of the slowdown was China where business activity has been contracting since January, the IATA said.

This was a "significant slowdown" in both February (1 per cent) and January (7.2 per cent) growth, the study said.

The European market also experienced a slowdown, with premium travel within Europe contracting 1.6 per cent in March compared to the corresponding period of previous year.

Almost all routes saw a slowdown in March compared to February, but some markets like those in the Gulf region, recorded solid and robust growth in premium travel, including the routes linked to the US where economic conditions continue to improve steadily.

The Gulf nations specifically enjoyed acceleration in non-oil sectors of their economies, ensuring strength in consumer demand and positive developments in sectors such as trade, transport and tourism, the study showed.