"Signs Of An Upturn" For International First And Business Class Airline Travel

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According to July statistics from the International Air Transport Association, there are "signs of an upturn" for first and business-class airline travel.

The IATA statistics showed that the number of premium travelers on international flights fell 14.1% in July compared to the same month a year ago. Despite the decrease, this was an improvement over the 21.3% decline reported for June.

"Premium travel correlated with world trade, which bottomed in May and started rising in June, but further rises are forecast to be relatively weak," the IATA said in its report.

The statistics further showed that the average revenue per seat sold, also known as yields, for international flights fell 23% for the month. Premium revenues dropped 35%-40%, while economy travel declined 1.2%.

"Passenger numbers are now starting to turn up, but there is a long way to go before activity returns to levels seen in 2007 and early 2008," the IATA said. "Moreover, with economic growth forecast to be relatively weak and much excess capacity (in the market), the problem of low yields remains."

Overall, however, airlines worldwide are expected to see significant losses. The IATA stated on September 15 that airlines could combine for a loss of $11 billion in 2009, up from the $9 billion that had originally been estimated. The IATA estimates the airline industry could lose $3.8 billion in 2010.

According to July statistics from the International Air Transport Association, there are "signs of an upturn" for first and business-class airline travel. The IATA statistics showed that the number of premium travelers on international flights fell 14.1% in July compared to the same month a year ago. Despite the decrease, this was an improvement over the 21.3% decline reported for June. (Market News Provided by RTTNews)