The slump in premium air travel worldwide may accelerate this year after plummeting for a seventh straight month in December, the International Air Transport Association said.
The number of passengers with first- and business-class tickets fell 13 percent in December from a year earlier, the Montreal- and Geneva-based industry group said today in a report on its Web site. Premium air travel fell 2.9 percent in 2008 as the collapse in demand canceled out growth earlier in the year.
The inability of airlines to cut capacity as quickly as declining demand is causing yields, or average fares, to slump, the organization said. IATA estimated that a 20 percent decline in premium fares will slash about 3 percent, or $15 billion, from airline revenue globally. More…
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