LCCs cash in as ‘premium’ plummets

Air Arabia and flydubai will have welcomed the latest figures from the International Air Transport Association (IATA), which indicates all is not well with the key business traveller segment.

The industry body has observed that “structural declines” in premium traffic are now occurring, particularly in Europe.

But it was not all bad news, not least for the low-cost sector, as according to IATA, there was a further improvement in passenger numbers travelling between the Middle East and Asia.

Reflecting the trend for low-cost travel, IATA noted that sales of economy tickets rose sharply too, taking total passenger numbers up 14.6% in June after a rise of just 9.4% in May, “partly reflecting the investment in tourism in the Middle East and direct travel to the region”, according to the industry body.

However, while it seems low-cost carriers are on the up, analysts have warned not to get too optimistic. These figures are not only driven by cheap fares, but also summer traffic and added capacity.

Sarah Cowell is the editor of Aviation Business.

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