Airlines see premium class boost from global trade pick up

Airlines see premium class boost from global trade pick up

Stronger global trade conditions helped to support airlines’ premium-class demand last year, new figures reveal.

The premium cabin share of total international passenger revenues increased to 27% in the first 11 months of 2017, up from 25.9% the previous year, according to Iata.

“Premium-class demand in 2017 has been supported by the broad-based pick-up in economic and trade conditions, particularly on key markets to, from and within Asia.

“That said, demand has lagged behind in a number of cases, notably between Europe and the Middle East, where impacts from travel bans and tighter budgets in the Gulf region have taken a toll,” the association said.

Overall passenger carryings grew by 7.6% “carrying solid momentum into 2018”.

The passenger load factor posted a record high for a calendar year in 2017 at 81.4%.

The airline trade body said: “Industry-wide passenger yields in late-2017 were largely unchanged in year-on-year terms.

“We forecast passenger yields to rise modestly in 2018 alongside a strengthening in global economic activity and rises in key input costs.

“Oil prices rose to a three-year high during January, but fell back sharply in early-February driven by record-high levels of oil production in the US.”

Initial airline financial results from the final quarter of 2017 indicate that the industry-wide profit margin remained broadly unchanged against the same period in 2016, at a “robust” 10.7% of revenues.


This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in air