Demand for air travel continued to grow during July, but the rate of recovery was lower than for June, said the International Air Transport Association (IATA).
International passenger demand grew by 9.2% in July 2010, compared to July 2009. In June, demand rose by 11.9%.
Giovanni Bisignani, CEO of IATA, said: The recovery in demand has been faster than anticipated. But, as we look towards the end of the year, the pace of the recovery will likely slow.
"The jobless economic recovery is keeping consumer confidence fragile, particularly in north America and Europe."
European airlines remained the worst performing of all the regions, showing a rise in passenger demand of 6.2% in July, compared to the same month in 2009.
The highest rise in air travel demand was seen in the middle east (16.8%), followed by Latin America (14.2%) and Africa (13%). North American airlines saw an increase in demand of 7.9%.
Improving demand is key to the recovery of the air travel industry, but Bisignani warned the financial situation remains fragile.
"The anticipated 2010 profit of $2.5 billion is only a 0.5% return on revenues," he said.
"We must go beyond recovery to secure sustainable profitability at levels exceeding the 7-8% cost of capital. For this we need a change in the industry's structure."
www.iata.org