KUALA LUMPUR - ASIA-PACIFIC airlines are being hit with a sharp fall in passengers and cargo traffic as the global economic crisis bites, an industry group warned on Tuesday.

The Association of Asia Pacific Airlines (AAPA) said passenger numbers slipped 4.1 per cent in October, while air cargo demand slumped 11 per cent.

'In recent months, Asia-Pacific airlines have been facing a rapid decline in both passenger and cargo demand as a result of the global economic slowdown,' said AAPA director-general Andrew Herdman.

The association said the average international passenger load factor for October fell 3.1 percentage points to 73.1 per cent.

And despite a 7.5 per cent reduction in cargo capacity, the average international cargo load factor for the month fell 2.6 percentage points to 65.4 per cent.

'AAPA member airlines carried 119 million international passengers in the first 10 months of 2008, in line with last year, but passenger numbers are now falling,' Mr Herdman said.

'Airlines around the world are facing extremely difficult market conditions, with expectations of even tougher times ahead in 2009,' he said.

'Asia Pacific airlines are moving quickly to adjust capacity in line with expected demand, and redoubling efforts to reduce costs throughout the business.' --AFP