Airlines Report Steep Decline in Global Business Travel

The number of passengers flying business- and first-class has dropped significantly this year compared with last, according to new data released last week by the International Air Transport Association (IATA), which predicts further hits for the premium air travel market.

In September, IATA reports, business- and first-class travel fell 8 percent from the previous year. In August, meanwhile, worldwide business travel fell 1.5 percent.

"Business confidence has fallen sharply in October, and with recession deepening further, significant falls in premium travel should be expected," IATA said in its Premium Traffic Monitor report, which excludes domestic air traffic.

Premium air travel isn't the only line of business suffering, however. Economy air travel also decreased 4 percent in September—the month that the global credit crisis hit—compared with 0.1 percent in August, according to IATA, which estimated last month that total passenger traffic had fallen 2.9 percent overall in September.

"We could see a deeper falloff ahead for October, November and December," Henry Harteveldt, an airlines analyst with Forrester Research, told McClatchy-Tribune. "I don't think 2009 will be the turnaround year."