Global air traffic descended 1.1 per cent in August

Global airline trafficwas 1.1 per cent lowerin August compared to the level of the same time last year, the agency that monitors the industry said Tuesday.

The August drop was better than the 2.9 per cent annualized decline seen in July, the Montreal-based International Air Transport Association said.

Load factors improved by 1.2 percentage points to 80.9 per cent during the month. But average fares continue to be depressed premium seats were an average of 22 per cent lower, and economy seats were on average 18 per cent lower.

Compared to the low point in March 2009, seasonally adjusted passenger demand has improved bysix per cent, but traffic levels remainfive per centbelow May 2008 levels, when the fall in demand began, IATA says.

To match capacity with demand, airlines have reduced the use of the jets in their fleet. The average daily use of the global 777 fleet has dropped by 2.7 per centto 11.1 hours per day through the first eight months of the year.

"Demand continues to improve, but profitability remains ever distant," IATA president Giovanni Bisignani said.

"Fares have stabilized, but at profitless levels.The industry is not out of the woods yet," he said.

Most parts of the world saw declines, with the Middle East being the lone exception. Carriers from the region were the onlyones to show year-on-year growth with demand expanding by 10.8 per cent.

IATA forecasts international passenger growth of just overfour per cent for 2010, compared to an expected full-year decline in 2009 of almost five per cent.