* Business travel begins to climb as trade revives-IATA
* Says Jan-Oct air travel down 18 percent year-on-year
* Premium passenger traffic down 9.3 percent in Oct vs Oct 2008 * Revenues from business travel down estimated 20 percent in Oct
GENEVA, Dec 17 (Reuters) - Premium airline seats are starting to fill up again after business travel plunged 18 percent in the first ten months of the year compared with the same period in 2008, the International Air Transport Association (IATA) said.
The number of business class passengers was 9.3 percent lower in October compared with the previous year, a slight improvement on the 13.9 percent year-on-year fall seen in September, the global airlines body said on Friday.
"A stronger rise in world trade in recent months appears to be associated with a modest rise in business travel," IATA said in its latest monthly report on premium travel.
Total demand for all classes was down by 5.1 percent in the 10 months from January to October, versus the same period last year, it said.
"Passenger numbers travelling on economy seats are down 3.6 percent but premium seat numbers are down 18 percent, reflecting the severity of the recession and downturn in business travel," IATA said.
Economy travel rose between March and October as the global economy became firmer. However, the group said in October, there was a fall-back in consumer confidence in the United States and Japan amid continued job losses, the group said.
"This and the need to repay debt may restrict the pace of expansion in economy travel over the next year," IATA said.
IATA said on Tuesday the world's airlines were set to lose $5.6 billion next year, far more than previously estimated, with a rebound in passenger and air cargo demand partly compensating for rising fuel costs..
Last week it estimated airlines' revenues from premium traffic were down 20 percent in October year on year.
One of the weakest business air travel markets in October was Europe, where premium traffic declined 19.7 percent, according to the Geneva-based body.
The strongest executive-class markets that month were in South America and the Middle East, including demand for long-haul connections through Middle Eastern hubs, it said.
Long-haul traffic across the North Atlantic and Pacific was down 5.8 percent and 12.1 percent, respectively. In South America, total passenger numbers rose 19.8 percent, while Middle East to Far East destinations were up by 14.8 percent, it said. (Reporting by Stephanie Nebehay; editing by Karen Foster)