Study finds no growth in first, business class on airlines

A new analysis of passenger data by the Stanford Transportation Group found that a growing number of business travelers are turning to small, private aircraft instead of booking premium seats on commercial airlines. In analyzing available data for all premium air travel options – which includes first, business and full-fare coach passengers on commercial airlines, as well as fractional programs, prepaid flight cards, charters and other options on business aircraft (both small jets and turboprops) – the study found that in 2007, the number of passengers on business aircraft accounted for 41 percent of all premium air travel. That’s up from just 16 percent eight years ago, the company said. “Premium airline travel has remained static and at a low level for several years,” said Gerald Bernstein, managing director of Stanford Transportation Group. “Despite the rise in total airline passenger trips through 2007, the number of premium trips (on airlines) has stalled at 41 million. Airline reports for early 2008 indicate reductions are likely this year.” On the other hand, the proliferation of new marketing schemes and booking systems for business aircraft has led to steady growth in that mode of travel for premium flyers, he noted. “As a group, the number of premium trips has fallen from 20 percent of overall airline travel prior to 9/11, to less than 10 percent of airline travel,” he said. “This can’t be a desirable trend for the airlines. It’s tough for most of the carriers to make a decent profit with over 90 percent of passengers flying on discount fares.”