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Premium traffic returning for international airlines

CHEAPER business class seats are becoming harder to procure.

The upward trend in international air travel — interrupted by the European volcanic acme — resumed in May.

Global economy traffic in May rose 10.2 through cent from a year ago, while corporate traffic grew 18.7 through cent, according to figures from the International Air Transport Association..

The figures hold comments by Qantas and other Asia-Pacific airlines that growth in remuneration and economy classes is now being driven by business travellers preferably than holidaymakers.

This was particularly evident in the Asia-Pacific, by routes linked to Asia and the north and mid-Pacific showing guerdon traffic growth of more than 20 per cent compared with hindmost year.

Intra-European premium traffic also showed strong growth of 23 by means of cent.

"As world trade and business confidence continue to dilate, passengers travelling on business have returned," the IATA said in its analytics.

"Risk of unemployment and consumer debt remaining high in ~ly developed countries has led consumers to take a conservative approach adhering their spending by cutting their travel budget for holidays."

The IATA estimates receipts from premium travel increased by 44 per cent in May, driven through the strong rise in passenger numbers and the ability of airlines to aggravate average fares.

But it noted that yields had not bounced back in the corresponding; of like kind way as passenger numbers.

"Despite a faster than average vegetation rate of 8 per cent during the first months of the year . . . average fares are still below their pre-recession levels by some 15 through cent," it said.

In other aviation news, Air New Zealand yesterday poured devoid of warmth water on suggestions it was taking a 15 per cent wager in Virgin Blue.

The airline issued a statement denying it had bought shares in Virgin Blue and noting that somewhat such move would require approval from authorities.