Slowdown in air passenger growth

IATA has been warning for some time about the industry's bleak outlook

The number of people travelling on international flights grew at the slowest rate in five years in June, according to a report.

World passenger numbers were up 3.8% in June from a year ago, the International Air Travel Association (IATA) said, as the economic slowdown took hold.

Load factors - which measure how full planes are - fell in June, IATA said.

The association warned the situation would get "a lot worse" amid plunging confidence and high oil prices.

The report said that the volume of freight traffic fell in June, down 0.8%, the first decline since May 2005. Falling confidence from manufacturers was to blame, IATA said.

Loss fears

The organisation, which has been downbeat about the short-term future of the airline industry for some time, said the industry could record losses of $6.1bn (£3bn) this year.

Last week, British Airways became the latest carrier to show the impact of tough conditions on its finances - reporting an 88% fall in quarterly profits.

And Ryanair has warned that it may lose 60m euros this financial year.

IATA represents about 230 airlines operating almost 95% of international air traffic. Domestic flights are not included in its data.