By Roderick T. dela Cruz

The airline industry carried the weight of the global economic recession in December, as both passenger and cargo volumes showed decline.

The International Air Transport Association said in a statement that international passenger traffic fell 4.6 percent in December 2008 from a year ago, while global cargo traffic plummeted 22.6 percent.

International cargo traffic for the full of 2008 was down 4.0 percent while passenger traffic showed a modest increase of 1.6 percent. International load factor stood at 75.9 percent.

Airlines registered $5 billion in total losses in 2008. The association said airlines this year might continue to incur losses of $2.5 billion based on a fuel price of $60 per barrel.

The association also forecast a decline of 3.0 percent in passenger volumes this year, a drop of 5.0 percent in cargo traffic and yield deterioration of 3.0 percent.

Industry revenues are also expected to contract $35 billion from $536 billion in 2008 to $501 billion in 2009.

?The 22.6 percent free fall in global cargo [in December] is unprecedented and shocking. There is no clearer description of the slowdown in world trade. Even in September 2001, when much of the global fleet was grounded, the decline was only 13.9 percent,? said Giovanni Bisignani, director-general of the association.

Air cargo carries 35 percent of the value of goods traded internationally.

The association, however, noted that the 4.6 percent decline in December passenger demand was less dramatic than the fall in cargo.

A 1.5 percent cutback in supply could not keep pace with falling demand, resulting in a 2.4 percent decline in the December load factor to 73.8 percent.

?Airlines are struggling to match capacity with fast-falling demand. Until this comes into balance, even the sharp fall in fuel prices cannot save the industry from drowning in red ink,? said Bisignani.

Bisignani said 2009 is ?shaping up to be one of the toughest years ever for international aviation.?