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Air traffic above pre-recession levels

The International Air Transport Association (IATA) said passenger traffic rose by double digits in May from a year earlier, to above pre-recession levels.

Overall international passenger traffic, measured by revenue passenger kilometres, rose by 11.7 per cent in May, compared with a year ago.

IATA director general and chief executive Giovanni Bisignani said demand "rebounded strongly in May following the impact of the European volcanic ash fiasco in April".

"Passenger traffic is now one per cent above pre-recession levels, while the freight market is six per cent bigger," Mr Bisignani said in a statement.

IATA, wihch represents about 230 airlines, said strong traffic growth was improving the industry's bottom line.

The body maintained a recent forecast that the airline industry would post a $US2.5 billion ($A2.95 billion) profit in 2010, compared with the $US9.9 billion ($A11.69 billion) in losses last year.

"This is good news, but it is only a 0.5 per cent margin," Mr Bisignani said.

"We are still a long way from sustainable profitability."

Mr Bisignani said airlines needed to focus on "nurturing the recovery" through carefully matching capacity to improving demand conditions.

"Everybody must control costs," he said.

"This includes airports, air navigation service providers, global distribution systems and labor. There are no exceptions."

Asia-Pacific carriers outperformed the broader market, recording a 13.2 per cent lift.

"Asia-Pacific carriers continue to drive the recovery based on robust economic growth, primarily in China," IATA said.

The largest increase in passenger demand came from Latin American airlines, which posted a 23.6 per cent improvement in May on the back of the region's strong economic upturn.

Europe had the weakest growth.

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