Worldwide air travel has been seeing large declines over the last 6 months. Business/first class traffic is down very sharply, but economy is also down.
For some reason, Asia seems to be hit even harder than the rest of the world:
Singaporean hotel revenues in Jan/Feb 2009 are down 29 % yoy. Roughly half of the drop is due to lower visitor arrivals, the other half due to lower prices.
Hong Kong airport and Cathay Pacific Airlines are also seeing sharp declines in Jan/Feb passenger numbers.
Mainland China, on the other hand, is seeing two conflicting trends: International passenger numbers are down 16 % (roughly in line with Singapore's experience), whereas passenger numbers on domestic flights are up 17 % (figures are also Jan/Feb). Extremely aggressive price cutting might have something to do with the growth in domestic air traffic, though.