According to the International Air Transport Association (IATA) the number of passengers purchasing first and business class tickets for airlines in June was up on figures recorded a year earlier. The industry body said it had recorded growth of 16.6 per cent on premium class tickets.

However there was some regional disparity with most demand coming from South America, Asia and the Middle East. Demand for transatlantic seats is still disappointing. Post recession caution meant that sale of economy class seats was only up by 9.5 per cent on last year as customers face austerity measures which is affecting demand.

A general increase in numbers of passengers and rising ticket prices has meant airlines are experiencing a 40 per cent lift in premium revenue. IATA has dramatically adjusted its forecast for airline profits saying that instead of a $2.8 billion loss it expects airlines to make profits of around $2.5 billion.

IATA said that for the second quarter it was recording a slowdown in growth but added that this was to be expected as the rebound from the global recession levels out along with boosts to business inventories. Many airlines are still counting the cost of the disruption caused by the volcanic ash cloud which hovered over Europe for nearly a week earlier in the year grounding aircraft.

Year-on growth for the second quarter was down to 9 per cent because of the factoring in of the ash cloud disruption. IATA has 230 members including airline giants Lufthansa, China Southern Airlines and American Airlines.