International airlines suffered their biggest decline in traffic since 1945 last year as passenger demand fell 3.5 per cent, the International Air Transport Association said yesterday.

Freight also fell, by 10.1 per cent, as "full-year 2009 demand statistics for international scheduled air traffic showed the industry ending 2009 with the largest-ever post-war decline," IATA said in a statement.

"In terms of demand, 2009 goes into the history books as the worst year the industry has ever seen," said Giovanni Bisignani, director general of the world's biggest airlines' association.

"We have permanently lost 2.5 years of growth in passenger markets and 3.5 years of growth in the freight business," he added.

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