Demand for international flights fell by 5.6 percent in January compared to the same month last year, figures from the International Air Transport Association (IATA) have revealed.
The figure means that demand has fallen for five consecutive months, with the Middle East the only world region reporting positive growth in terms of passenger traffic (3.1 percent).
Giovanni Bisignani, IATA’s director general and chief executive officer, said that "alarm bells are ringing everywhere".
"Aside from the Middle East carriers, passenger demand is falling in all regions," he said.
"The industry is in a global crisis and we have not yet seen the bottom."
Airlines in Asia suffered most from the decline in demand, reporting an 8.4 percent year-on-year drop in January.
Elsewhere, carriers in North America experienced a decline of 6.2 percent, while European airlines attempted to counter a 5.7 percent drop in demand by reducing capacity by 3.6 percent.
The IATA recently encouraged the new Obama administration to use the aviation industry as a "catalyst" for economic recovery.