Global air travel “sluggish”, premium travel “fragile”

But premium travel in Europe rises 4.8%, reflecting economic recovery
In its latest Premium Traffic Monitor, the International Air Transport Association describes passenger travel on international markets “sluggish” and premium travel “fragile”.
In general, global passenger travel rose 3.8% in April compared to a year ago, slower than the 4.6% result in March. Premium international travel showed an acceleration in April (up 4.9%) on March (up 4.6%), but this growth trend “remains fragile when looking at the past six months”, IATA said.
“There was a rise in premium international air travel volumes in April compared to March, but given developments in demand drivers and the inherent month-to-month volatility in the data, this does not necessarily mean an upturn in the trend,” it explained.
The outlook does not look healthy. Global economic growth appears to be have slowed in May for the second consecutive month, according to measures of business activity, and world trade is experiencing the steepest decline since 2013.
However, some markets show solid increases for the time being. International travel within the Far East was up 11.7% overall, and premium travel within Europe rose 4.8%, consistent with recent indicators that economic recovery is on track.
“Looking ahead, recent developments in the global economy present downside risks for growth in international air travel,” IATA concludes. “Economic weakness in Asia from falling trade activity could lead to deterioration in business related air travel for that region. That said, there has been no sign of weakness in demand so far. It is unclear if these negative developments will be offset by improvements in advanced markets like Europe and the US, which should support demand for air travel.”
TTG Nordic