Premium air traffic in Mideast tumbles 14%

TRAFFIC TUMBLES: Premium air traffic within the Middle East fell 13.8 percent in September. (Getty Images)

Premium air traffic within the Middle East plunged 13.8 percent during September as corporations cut back on expenses amid the worst global financial crisis since the 1930s, according to new industry figures.

The International Air Transport Association (IATA) said premium transit air traffic between Europe, the Middle East and the Far East also dropped dramatically during the month, with Europe-Middle East traffic falling seven percent and Middle East-Far East traffic tumbling 18.2 percent compared to the same period last year.

Worldwide premium traffic declined eight percent, which the IATA said reflected "the severity of the economic downturn".

On average premium traffic - first and business class passengers - accounts for around 25 percent of airlines' total revenues, while representing just 10 percent of total traffic, according to the IATA.

"The sharp fall in business travel coincided with a steep decline in the confidence of manufacturing businesses in Europe, Japan and the US. September also marked the bankruptcy of Lehman Brothers which contributed to a sharp fall in passengers from the financial sector, particularly on the North Atlantic market," the IATA said in a statement.

The fall in premium traffic helped drag down total air passenger traffic in the Middle East for the first time in years, dropping 2.8 percent in September after years of double-digit growth.

IATA chief economist Brian Pearce told Arabian Business in October that major Middle East airlines would likely see revenues drop and could be forced to cut back aircraft orders as the global economic downturn hit passenger traffic.

Dubai-based Emirates, the largest Arab carrier, maintained premium traffic remained "strong".

"The commercial performance of our premium cabins continues to be strong. Forward bookings are also robust, with many flights already choc-a-bloc over the upcoming holiday months," the airline said in a statement.

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READERS' COMMENTS

Staying put
Posted by sid, Sharjah on Friday 21 November 2008 at 15:47 UAE time


I usually fly once a month to somewhere, either for fun or business. But I have no plans of leaving for the next few months. It's time to be frugal now. Like never before, Cash is King!

Emirates airlines...
Posted by paul., Dubai, uae. on Thursday 20 November 2008 at 08:56 UAE time

Forward bookings are also robust, with many flights already choc-a-bloc over the upcoming holiday months, the airline said in a statement. "yes, because most people here go home for Christmas" Lets see early next year if your flights are fully booked.

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