Business and first-class passengers returned in greater numbers to Middle East carriers in October after a remakrable drop in demand the month before. Regional premium travel was up 10.5 per cent compared with October, the International Air Transport Association said yesterday in its latest report, defying concerns of a sharp regional slowdown.
But for the US$500 billion (Dh1.83 trillion) worldwide airline industry, October was generally bad news, as the number of premium tickets sold was down 6.9 per cent from the same period last year. "The massive adjustments now taking place in banking are being seen reflected in the slump of business travel," IATA noted, adding that more pain was likely to lay ahead. "With most economic forecasts suggesting that the recession will not bottom out until the middle of next year, further sharp declines in business travel and premium revenues should be expected well into 2009."
In September, ticket sales for the front cabins among the 35 IATA member airlines based in the Middle East fell 13 per cent as companies revised their travel rules and required executives to travel in economy more often. It was the most significant drop in four years. India-based Jet Airways, which started its 14 weekly flights to Abu Dhabi from its bases in Mumbai and New Delhi in April, said October was an average month. The Indian carrier has not seen great demand for business-class travel and said its premium cabins were on average 40 to 45 per cent full over the period.
"We do hear from travel agents that their corporate account clients are cutting down on travel budgets," said VM Kumar, the regional manager based in Abu Dhabi for Jet Airways. "It is likely we might see some drop as an impact of the global financial crisis." In the report, IATA said premium travel from the Middle East to Africa was up 9.2 per cent in October, while Europe surged 8.6 per cent. Travel to the Far East gained 6.8 per cent. The travel sector, which dipped into negative territory was premium travel from the Middle East to the South-west Pacific, fell 15.4 per cent.
News of layoffs emerging from UAE property and banking firms heartened at least one airline manager, however. Shiran Perera, the country manager for Sri Lankan Airlines, said he was looking forward to transporting some of those made redundant back to Sri Lanka and India. "I see it as an opportunity to take people home," he said. igale@thenational.ae
