Long-term premium traffic trends
December 2013
The six IATA regions below represent almost 70% of global premium revenues. The graphs show premium traffic volume growth rates, on a 12 month moving average basis to smooth out seasonality, and the percentage revenue figure refers to IATA’s estimate of premium passenger revenues as a proportion of total passenger revenues in that region.
The most obvious observation is that there has been a complete rebound from the slump in premium travel that followed the 2008 financial crash, but the recent annual growth rates are generally below those of 2007. Latest monthly numbers from IATA, however, do suggest that this sector is again strengthening.
North Atlantic: Although traffic volume increases have been modest post the rebound, the importance of premium traffic in this region stands out — over half of all revenues derive from premium travellers who account for just under 15% of numbers, so an relative fare ratio of 3.5:1.
Europe-Far East: For the second most important region, there is a very similar pattern; in this region the fare ratio is 2.9/1.
North/Mid Pacific : Business class travel in the region has also been affected by the prolonged Japanese recession and volume growth rate have been modest; the fare ratio is estimated at 2.3/1.
Intra-Far-East: Strong growth in volumes but the percentage of business class passengers is comparatively low, partly because of the medium haul nature of travel; the fare ratio is estimated at 2.2/1.
South Atlantic: A very strong recovery as South American economies boomed, but a marked slow-down recently as they have faltered; the estimated fare ratio is high at 3.1/1.
Europe-Africa: In revenue terms this market is larger than the South Atlantic, though more volatile, the second dip reflecting the impact of the Arab Spring revolutions in the north of the continent; a fare ratio of 3.3/1 would be greater but for the fact that Economy fares are also high in this restricted market.
