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Sunday, December 30, 2012

IATA: air travel growth showing signs of stabilizing

IATA said weakening air travel growth is showing signs of stabilizing, with a 2.3% year-over-year lift in premium traffic for October, down from the 3.8% in September.

In its latest premium traffic monitor, IATA estimated that Hurricane Sandy, which disrupted travel to and from the US northeast at the end of the month, negatively impacted total air travel by just half a percentage point. Economy travel in October was up 4.4% from the prior year period, a slightly lower result than September’s 5%.

“Looking ahead, the soft demand environment that has weakened air travel growth over recent months is showing some signs of stabilizing,” IATA said in a statement. “Although world trade growth remains slow, the decline in business confidence seen throughout the third quarter has now reversed, with current levels indicating stability in the business environment in the months ahead.

Consequently, we would expect the downward pressure on growth in air travel, particularly in premium markets, to stabilize over coming months.”

The only region to record a decline in its premium traffic growth for the month of October was South America, falling 6.6% year-over-year. IATA noted the results could be partially due to Brazil’s weak third quarter GDP growth results.

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