The prediction comes on the heels of a 7.9% freight volumedecline in October compared to the previous October. The declinewas the steepest monthly fall in eight years and the fifthconsecutive month of what the organization labeled "increasinglysevere drops."

"The deepening slump in cargo markets is a clear indication thatthe worst is yet to come," says IATA director general GiovanniBisignani. "The gloom continues and the situation of the industryremains critical."

The October decline was particularly steep for Asia-Pacificcarriers, which handle 45% of world air-cargo volume. They sufferedan 11% decline for the month, as did Latin American carriers. NorthAmerican and European airlines reported smaller drops of 7.6% and5.4%, respectively, while African carriers actually saw volume rise3%. Middle East operators also showed an increase of 1%.