The International Air Transport Association reported an increase of 5.9% in passenger demand in 2011 Wednesday.
The cargo markets however saw a decline of 0.7%.
"2011 was a year of contrasts. Healthy passenger growth, primarily in the first half of the year, was offset by a declining cargo market", said Tony Tyler, the director-general and chief executive of IATA.
"Optimism in China contrasted with gloom in Europe. Ironically, the weak euro supported business travel demand," added Tyler.
"But Europe's primarily tax-and-restrict approach to aviation policy left the continent's carriers with the weakest profitability among the industry's major regions," he said.
According to Tyler the business conditions will remain tough in 2012 and called for political measures to cut bureaucracy for airlines.
The Geneva-based group The group represents some 240 major airlines.
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