An aviation industry body says increasing numbers of business travellers are forgoing executive-class seats and flying economy, especially in Europe.
Airline revenues from business and first-class tickets were down by at least a quarter in January from the same month a year ago, due to lower demand amid gloomy economic prospects, according to the International Air Transport Association (IATA).
'There is evidence that business passengers are trading down to cheaper tickets,' the Geneva-based body said in its latest Premium Traffic Monitor.
While European business travellers have been shifting to cheaper seats on short-haul flights in recent years, alongside a proliferation of low-cost airlines such as EasyJet and Ryanair, IATA said economic distress had amplified this trend.
Promotional fares meant to encourage continued travel in spite of increasing job cuts and financial turbulence have inflicted further pain on the industry, according to IATA, which represents 230 airlines.
Economy travel demand has also slumped in response to the global financial crisis, but at a slower rate than the premium segment airlines depend on for much of their profits.
The weakest business-class market in January was in Asia, with a 23% drop, while the figure for travel within Europe was down 22%.
IATA has forecast that global carriers are set to post $2.5 billion in losses in 2009, after losses of up to $8 billion last year.
