IATA has reported a 0.6% year-over-year decline in the number of passengers flying in premium seats on North Atlantic routes during March, and a 1% increase on routes within Europe, leading it to describe the outlook for premium airline traffic on North Atlantic and intra-Europe routes as "bleak."
IATA notes the effects of "recession throughout the eurozone and slow growth in the United States," including the impact of US government spending cuts.
"The weakness in developed economies, particularly in Europe, has caused international trade of developed countries to decline overall," IATA said. "By contrast, international trade in emerging economies — such as Asia, the Middle East and South America — has been increasing at a stronger rate, helping sustain the growth we are seeing in business-related premium travel."
Premium traffic in the Far East region grew 12% year over year during March. IATA notes that “although China's GDP growth did not meet forecast expectations in Q1, there is no sign of any resulting weakness in business travel demand in the region.” Adding that "Emerging markets continue to be the major source of growth in international premium travel."