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Passenger demand for international flights declined to its lowest point for five years during June, according to new figures.

Research from the International Air Travel Association (IATA) revealed that passenger growth was at 3.8 per cent in June of this year, a five-year low.

According to the report, load factor was down to 77.6 per cent and European airlines saw demand decline from 4.1 per cent in May to 2.1 per cent.

Freight air traffic declined during the month, with Asia Pacific airlines seeing the largest falls, the study showed.

"The global economic turbulence clearly shows in the 0.8 per cent drop in freight volumes compared to last year," said Giovanni Bisignani, director general and chief executive of IATA.

Despite showing some growth at 3.8 per cent, he added that oil prices and falling economic confidence could mean continued falls in demand.

Mr Bisignani urged the aviation industry to take action to become more efficiency and called on the government to "stop crazy taxation and give airlines the freedom to merge and consolidate where it makes business sense".

Separately, British Airways has initiated a merger with partner carrier, American Airlines. The two airlines have tried to merge twice before, with both attempts rejected by competition authorities.

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