New Delhi, June 30 (IANS) The global airlines association Thursday reported an increase of 6.8 percent in international passenger traffic for May this year, compared to the like period of 2010.

According to the International Air Transport Association (IATA), the positive passenger growth in May has helped in reducing pressure on profits in the high fuel prices environment, but freight segment has continued to be in a slump, with a downfall of 4 percent.

"This (passenger traffic) is 4 percent higher than the beginning of the year, whereas freight traffic has showed a drop of 4 percent against the post-recession peak of the re-stocking cycle in May 2010," IATA said in a statement.

The statement said that India's domestic demand was robust at 13.8 percent in May as compared to previous-year levels with a capacity expansion 19.9 percent.

Meanwhile, IATA's director general and chief executive Giovanni Bisignani said he was confident that the airline industry will make profit for 2011, but cautioned that there were grave risks associated with political unrest in the Middle East and the European currency crisis.

"We still expect the industry to make $4 billion this year. That is a pathetic 0.7 percent margin and another shock could alter the industry's fortunes dramatically," said Bisignani.