World airline passenger traffic fell 3.1 per cent this year, the biggest drop in aviation industry history, fuelled by the global financial downturn, the International Civil Aviation Organisation (ICAO) said.

Preliminary figures for airline travel this year showed that international traffic declined by about 3.9 per cent and domestic traffic by 1.8 per cent, despite sharp growth in some regions, according to a report in our sister newspaper Gulf Daily News.

Total passenger traffic - both domestic and international - fell in all regions except the Middle East, which posted 10 per cent growth. All other regions recorded negative growth, with Africa hardest hit at minus 9.6 per cent overall, the ICAO said.

The 3.1 per cent drop in passenger traffic this year compared to last year was the largest on record for the industry and 'reflects the 1 per cent drop in the world gross domestic product for the year,' the organisation said.

'The double-digit domestic passenger traffic growth in the emerging markets of Asia and Latin America, and the relative strong performance of low cost carriers in North America, Europe and Asia Pacific helped curtail the decline in total traffic.'

The ICAO predicted a moderate recovery of 3.3 per cent growth for the airline industry next year, in line with improving economic conditions around the world.

For 2011, it forecast momentum to build to return to the traditional 5.5 per cent yearly growth rate in airline passenger traffic.