Passenger traffic was down 1.1 percent in August compared to the same month last year while load factors went up 1.2 percentage points to 80.9 percent, the International Air Transport Association said on Tuesday.
The decline in August is the smallest drop seen since August 2008 when the industry posted a 1.3 percent year-over-year gain.
"Fares have stabilized, but at profitless levels," said Giovanni Bisignani, IATA's chief executive. "Meanwhile, cost pressures are mounting from reduced aircraft utilization and rising oil prices. The industry is not out of the woods yet."
The IATA report says that average fares continue to be depressed, down 22 percent for premium seats and 18 percent for economy.
North American carriers posted a passenger traffic decline of 2.5 percent in August, an improvement over July's 3.2 percent drop.
For 2010, IATA said it expects the average international passenger traffic to grow by 4.0 percent and that in 2009, the industry will report a full-year decline of almost 5 percent.
The full release can be seen here.
-Andrea Ahles