In July, the passenger traffic fell 2.9percent globally, and 6.8percent in the first six months of the year.

The load factors stood at 80.9% in August, up 0.6percentage points compared to a month earlier.

“Demand continues to improve, but profitability remains ever distant,” said Giovanni Bisignani, IATA’s Director General and CEO. “Fares have stabilized, but at profitless levels. Meanwhile cost pressures are mounting from reduced aircraft utilization and rising oil prices. The industry is not out of the woods yet,” said Bisignani.

IATA represents some 230 airlines comprising 93% of scheduled international air traffic.