The air line industry is facing new challenges. The global price of crude oil is increasing while number of passengers is decreasing. It is adversely affecting the growth of global aviation sector.

The International Air Transport Association (IATA) said that the aviation industry has suffered a loss of about of $6.1 billion in current fiscal as compared to loss of $5.6 billion in last year. The international aviation body released the traffic data for June. It observed that the growth rate is decreased by 0.8 percent compared to June 2007.

The passenger load factor was 78.8 percent in June 2007 and it is recorded 77.6 percent in June 2008.  IATA director general and CEO, Giovanni Bisignani blamed high fuel prices for the slowdown the aviation sector. He warned further slowdown in both in cargo and passenger load. He added that the efficiency is a only path of job security of labours. He demanded withdrawal of taxes from the government and provide freedom of merger and consolidation of aviation sector.

According to the data released by IATA the Asia Pacific recorded a fall of 3.2 percent in June from 4.5 percent in May. Middle Eastern carriers' recorded a fall of to 9.6 percent in June.

It is the first time in the aviation history of world when it has seen a fall of 0.8 percent since may 2005. The data released by IATA is concerned with international passenger load.