Europe’s business travellers switch to economy
The global growth in airline passenger numbers is expected to slow in the coming months due to concerns about the world’s economy, TTG Digital reports.
The International Air Transport Association’s Airline Business Confidence Index for January 2015 shows that air transport has been expanding at a rate of between 5% and 6%. While growth is predicted to slow down, 78% of airline chief financial officers surveyed say they still believe profitability will continue to grow in the coming year.
This is because of expected falling input costs such as the price of oil, combined with the ongoing – but slower – rise in passenger numbers.
The survey adds that the number of people employed by airlines remained stable in the last quarter of 2014 and no great fluctuations are expected in 2015.
Meanwhile, IATA’s latest Premium Traffic Monitor released yesterday puts growth in international air passengers at 3.6% in November 2014 year-on-year, showing no improvement on October’s 3.7% increase. Consistent with weakening global business conditions, the results suggest that growth in international air travel is stalling.
Travel within Europe performed well overall in November with a 4.9% rise compared to a year ago. Much of that growth, however, took place in economy class travel (up 5.2%), partly driven by business travellers substituting away from premium seats (up 0.9%) as a means of cost cutting.
TTG Digital / TTG Nordic
[pictured: Aegean Airlines and Lufthansa aircraft, pictured in 2010; photo by Felix Gottwald, www.felixgottwald.net]