GENEVA, SWITZERLAND - INTERNATIONAL air traffic fell for a second month running in October, IATA said on Thursday, warning that recession now posed the biggest threat to airline profitability after a period of record fuel prices.

International air passenger traffic dipped 1.3 per cent in October compared to the figure for the same month last year, while air freight traffic dropped 7.9 per cent, according to latest statistics from the industry association.

'The gloom continues and the situation of the industry remains critical.

While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability,' said Giovanni Bisignani, IATA's Director General and CEO.

Asia-Pacific carriers posted a fall in traffic of 6.1 per cent, while North American carriers saw traffic dip 0.8 per cent.

Latin American posted growth of 4.5 per cent and Middle Eastern carriers achieved an increase of 3.5 per cent, but these were 'well below the double-digit growth rates' posted during the first half of the year.

'Economic forecasts for both regions see considerable slowing of GDP growth over the next 12 months to the 2-4 per cent range. Airlines in both regions can expect a continued slowing of growth,' said IATA.