GENEVA - STRUGGLING airlines faced more trouble in November, with passenger numbers down and freight hit by a 'shocking' 13.5 per cent fall, industry group IATA said on Tuesday, warning of heavy losses.

'The industry is now shrinking by all measures ... We can expect deep losses in the fourth quarter,' IATA chief Giovanni Bisignani said.

International air passenger traffic in November was down 4.6 per cent from a year earlier, marking the steepest fall in the past three months.

In October, passenger traffic was down 1.3 per cent after a fall of 2.9 per cent in September, the International Air Transport Association noted.

Meanwhile, international cargo traffic in November saw its largest drop since the September 11, 2001 terrorist attacks.

'The 13.5 per cent drop in international cargo is shocking. As air cargo (accounts for) 35 per cent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown,' said Mr Bisignani.

IATA said earlier this month that it expects the industry to lose US$2.5 billion (S$3.6) in 2009 due to the economic crisis after losses of some US$5 billion this year.