WHILE global premium travel grew strongly by 6.5 per cent year-on-year in May, the outlook for business travel in Asia remains cloudy amid volatility in regional trade indicators.

Premium travel worldwide grew at a more robust pace compared with April - when growth came in at 3.8 per cent - as "downward pressure on demand drivers from emerging markets" eased, said the International Air Transport Association (Iata) in its latest premium traffic monitor.

The Far East, however, posted growth of just 2.5 per cent as a slowing Chinese economy put a damper on the demand for premium seats. And, while manufacturing activity in China is expanding again, Iata warned that the outlook for the region remains unclear given that indicators of trade are mixed and export orders have fluctuated in recent months. Trade is typically seen as a good indicator of business travel.