IATA has warned that “widespread” declines in international trade and business confidence is having a notable impact on global air travel demand, including in India and China. “Forward-looking indicators for air travel, particularly travel on business, continue to point to a further slowdown in the months ahead,” the trade group said. 

International business travel fell sharply at the end of Aug-2011, following an unexpectedly strong start to the month. Premium passenger numbers rose just 2.3% in Aug-2011 on a year-on-year basis, following growth of 7.5% in Jul-2011, with premium travel falling back to levels last seen in 4Q2010. Correlating with the decline in premium traffic volumes, there was also a marked decline in premium revenues in Aug-2011, which declined to the lowest levels in 16 months.