Premium Air Travel Rebounds in Q1 2024: IATA

Premium class air travel, comprising Business and First Class, has experienced a resurgence in the first quarter of 2024, according to recent data released by the International Air Transport Association (IATA). Premium class traffic contributed 20% to airline revenues during this period, with growth observed across various regions.

From 2011 to 2019, premium class traffic typically accounted for about 20% of total passenger revenues, despite representing only 7% of total revenue passenger-kilometers (RPK). However, the pandemic disrupted this proportion, leading to a decline in premium class travel.

"Now it seems to be back on track, with the first quarter (Q1) of 2024 showing an improvement compared to the previous year", said IATA. This resurgence is marked by an increase in premium class traffic's contribution to airline revenues, while its share of total RPK remained relatively stable, nearing pre-pandemic levels.

As highlighted by the study, all regions experienced growth in premium class revenues in the first quarter of 2024, despite minimal changes in capacity allocation within this segment. North American carriers, in particular, witnessed a 9.4% uptick in revenue generation from premium segment traffic, although the segment's share of total RPK increased only marginally.

Similarly, airlines in the Middle East saw a rise in premium class revenues, capturing 27% of total premium passenger revenues in the first quarter of the year, compared to 21% in the same period last year, while maintaining a stable 8% share of RPK.

Meanwhile, Africa and Latin America, although traditionally less focused on premium classes, managed to improve their share of total revenues by 3.5 and 2.5%, respectively.