Despite April's volcanic ash-related airspace closures in Europe, global premium travel volume for the first-half of the year was up 11.9% year-over-year and economy travel was up 6.3%. Total international passenger traffic lifted 6.8% in the first half of the year compared to the first six months of 2009, the organization said in its latest "Premium Traffic Monitor" released yesterday.

It said strong business travel is driving both market segments. Coincident indicators like world trade have been strong, rising 18% in May and supporting similar growth in premium travel. Forward-looking indicators such as business confidence have been similarly positive.

“We estimate premium revenue in June was up by just over 40% compared to the same month last year," IATA reported. "This is not only due to the improvement in the number of passengers, but it is also driven by a strong rise in the average fare and yield supported by tighter supply-demand conditions. There is a lot of regional variation. US airlines are seeing yields and revenues rising very strongly."

The report stated that Asian markets continue to show strong growth, as does Latin America. Transatlantic travel, with the weak European economies at one end, continues to "underperform," IATA said.
The organization said "there is little sign of a widespread revival in leisure travel," explaining, "Consumer confidence eased in June, especially in Europe and in the US where fears of renewed economic weakness are high."

Source: www.atwonline.com