MUMBAI: Premium class travel in the month of August rebounded in August, with 8.5 percent year-on-year growth, compared to 0.5 percent contraction in July, as per estimates by International Air Travel Association (IATA). Economy class travel was also up, with the market 6.2 percent higher than a year ago, compared to July's 3.0 percent increase.
However, IATA said that the growth may not necessarily signify a robust market. "We are cautious about extrapolating the improvement in premium travel into the months ahead. The modest improvement in business confidence doesn't justify the significant rise in business travel in August," said a statement by IATA. "The rebound was narrowly based, with much of the increase coming from within Europe and across the North Atlantic," the statement said.
IATA said that since the Eurozone is still in slow economic growth mode, the rise in the figures does not look sustainable. The increase from August last year to this year could also have been prompted by Hurricane Irene which had reduced the traffic in Europe last year.
"Although the seat mix has improved, it is hard to rationalize with current business conditions suggesting the opposite trend. But routes connected to emerging economies continue to show robust performance, with solid growth in August. Air travel performance reflects a combination of downward pressure from Europe, and support from emerging economies and, to some extent, the US," the IATA statement said.
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