International Airlines Group warns premium demand is losing pace
Demand for premium traffic is softening in October, a development that could impact airlines’ Q4 revenues. International Airlines Group, the parent company of British Airways and Iberia, warned yesterday about “softer demand” for premium cabins. Its premium demand increased by 9.3% in September year-on-year, compared to just 3.5% growth for economy traffic, but “indications so far for October point to a softer demand picture in premium traffic and cargo.”
As a consequence, the group has already moved to reduce its long-haul fleet by three planes during 2012. IAG’s overall passenger numbers for the first nine months of 2011 were up 2.7% year-on-year to 39.4 million, but they fell 1.8% in September y-o-y from 4.8 million to 4.7 million.
[pictured: British Airways‘ First cabin]