Rising fuel prices have naturally had an negative impact on the number of international air travelers flying in business or first-class. However, the reduction has become more apparent since March, and statistics indicate that the “absolute decline” in business and first-class passengers is the first for five years.
The International Air Transport Association has announced that premium air traffic went down by 3.9 percent when compared with last year. The Chicago Tribune quotes the IATA commenting on the issue.
“Given the importance of premium passengers for airline profitability the absolute decline in numbers is bad news, particularly since the price of jet fuel rose 170 percent over the year to March reaching $130 a barrel.”
Bay News 9 reports that the reduction was predicted.
The results were not a surprise given the struggles of the U.S. economy and some others in southern Europe, but also do not bode well for an airline industry already stressed by record fuel prices. Business travel is highly linked to the financial services sector, and many in that struggling industry have stopped flying, said IATA Chief Economist Brian Pearce.
Photo:© gak
No related posts.