"Slight slowdown" in rate of fall - IATA
Air passengers numbers fell by 7.2% in June compared with the same month in 2008, the International Air Transport Association (IATA) said today (July 30)
But it said the decline was a "slight improvement" on figures for May which saw a 9.3% fall in numbers.
IATA said the 4.3% cut in capacity by airline was still not keeping pace with the falling demand.
This was leading to pressure on fares and yields for carriers it said.
The region worst hit by the fall in demand was Asia-Pacific which saw a 14.5% drop after a 14.3% fall in May.
IATA said it estimated 4% of the fall was due to fears over swine flu virus H1N1
The decline in other regions was less with North America showing a 6.7% in June after a 10.9% drop in May, Europe a 7.1% after 9.4% in May, Latin America 4.7% after May's 9.2% and Africa a 5.9% fall in June.
The Middle East was the only region to report an increase in demand of 12.3% along with a 15.2% growth in capacity.
Giovanni Bisignani, IATA's director general and ceo, said: "International passenger demand remains very weak.
"These are extremely challenging times for airlines. There are no signs of an early economic recovery.
"Other external risks are potentially great, including rising oil prices and the impact of Influenza A(H1N1) on demand.
"Cash flow is threatened by weak demand, exaggerated by fare discounting. And, after years of cost reduction, the scope for further cuts is limited.
"Flexibility is critical in finding new sources of capital and new markets.
"This crisis highlights the need for governments to replace outdated restrictions on ownership and market access with modern commercial freedoms. Quick action is needed,"