revising down its previous forecast,
issued in September, of a 1 percent year-over-year increase. The consultancy noted
"weaker than anticipated business travel demand growth in Europe."
Meanwhile, noting "low-cost carrier expansion," Advito also lowered
Asian airfare expectations, including a 1 percent increase for intercontinental
economy fares (down from a previously projected 3 percent increase), a 4
percent drop in regional business fares (deeper than the original 2 percent
decline forecast) and a 2 percent reduction in regional economy fares (down
from a forecast calling for no change). In the Middle East, owing to capacity
growth, Advito reduced intercontinental business and economy fare forecasts to
4 percent reductions from the 2 percent declines it first projected. Other
revisions include small increases in Latin American fare projections, now at 5
percent growth for regional economy fares and 4 percent for intercontinental
business fares.