Airline passenger growth is slowing, freight markets are shrinking and there is not much optimism for improved conditions, says the International Air Transport Association.
The association, which represents about 230 airlines, said passenger demand in August was up 4.5 per cent on the previous year compared with 6 per cent in July.
The decline in freight markets had accelerated, contracting by 3.8 per cent in August compared with the previous year - more than double the drop of 1.8 per cent in July, it said.
Association director-general and chief executive Tony Tyler said the industry had shifted gears downward.
"The pace of growth in passenger markets has dipped and the freight business is now shrinking at a faster pace.