Geneva  - January was the fifth consecutive month of contraction in international air passenger demand and was the eighth straight month of contraction for freight traffic, the International Air Transport Association said Thursday.

"Every region's carriers are reporting big drops in cargo," Giovanni Bisignani, the IATA chief, said in a statement.

Furthermore, "aside from the Middle East carriers, passenger demand is falling in all regions."

Tata Consultancy Services would continue to provide IT services to Singapore Airlines for another three years, providing all basic application solutions to the airlines for its efficient working. The airline chose the Indian IT firm in a formal vendor selection process under existing terms and conditions.

German air carrier Lufthansa ended up paying Rs 10,000 to a city-based businessman who was refused non-vegetarian food on a Frankfurt-bound flight on October 23, 2007.

Wellington  - Air New Zealand announced Thursday a 79-per- cent slump in after-tax profits for the six months ending December 31, after what chairman John Palmer said was one of the toughest periods airlines had ever faced.

The airline, which is 76 per cent owned by the government, reported net profits of 24 million New Zealand dollars (12.24 million US dollars) for the half-year.

Palmer cited the unprecedented price of fuel, which rose 36 per cent on the same period in 2007, adding 211 million New Zealand dollars to costs of running the airline.

Slipping international traffic is pushing foreign carriers operating out of India to downsize capacity and drop loss-making routes.