Geneva - Air passenger traffic in February dropped by 10.1 per cent, following a trend of declines in recent months, The International Air Transport Association said Thursday.

A 5.9 reduction in capacity last month, deemed by the association to be "the most aggressive since the crisis began," was not able to keep pace with the continued decline in passenger travel.

Also, international freight volumes were 22.1 per cent below 2008 levels, the third consecutive month of such steep declines.

Freight has been in decline since June 2008, as a result of the financial crisis which subsequently caused drops in passenger travel as the real economy carried the full brunt of the downturn in the autumn.

February's drop in passenger numbers was hardest felt in Africa, North America and Europe, while Latin America saw a smaller decline of about 3.8 per cent. The Middle East was the only region to have defied the downward trend, posting a modest 0.4 per cent rise.

Africa was also the hardest hit in the cargo sector, with demand dropping 30.7 per cent. Middle Eastern carriers were the least affected, the IATA said, losing 4.8 per cent in demand while adding over 5 per cent in capacity.

The IATA said governments should reconsider tax policies to give a boost to the struggling industry and also allow for easier cross- border mergers, so companies can consolidate when needed. (dpa)