An IATA (International Air Travel Association) report for June shows that air travel remains depressed, with little sign of increase. Premium airline seat bookings have been stagnant too, with economy seat sales on the increase, reports the Cape Argus. The rate of growth in air travel has been on the decline since the beginning of the year.
IATA represents 240 airlines, 84% of the international air traffic, and publishes a regular Premium Traffic Monitor. Encouraging signs of growth in the premium market at the end of last year have disappeared, with little growth being evident this year, ascribed to the ‘fall of world trade in recent months and the decline in business confidence‘. International travel increased by 6 % against a year ago, and this could mean that premium class travellers are downtrading to economy seats. The biggest decline in air travel growth is within Europe, and between Europe and the USA. Travel in the Middle East, Far East, and North and South America, unconnected to Europe, has remained ‘solid‘. A longer term growth trend in international air travel shows ‘little promise’ for the future, IATA concluded.
Given this depressing scenario for international air travel, one would hope that SAA and other airlines servicing South Africa will sharpen their pens when it comes to the pricing of airline seats.
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Twitter: @WhaleCottage
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