The International Air Transport Association has confirmed that for the first time since the global recession took hold two years ago, the number of passengers boarding flights with the world’s major airlines has bounced back. Following almost 24 months of plummeting numbers, air passenger levels are back to their pre-recession figures.

Figures for May show that passenger traffic jumped by 12 per cent compared to the same month a year earlier. IATA also claims that demand for air freight during the same month jumped by a massive 34 per cent on a year ago. A rise in air freight is always a good sign that an economy is feeling better.

IATA said that in April passenger traffic levels were close to getting back to pre global recession levels, but recovery was interrupted by the volcanic ash cloud generated by the Eyjafjallajokull volcano which resulted in European air traffic coming to a virtual standstill for nearly a week.

The new figures support IATA’s decision to dramatically upgrade its predictions for profit in the airline industry. In March, the trade body said that airlines around the globe would make combined net losses of $2.8 billion for the year. IATA changed its mind earlier this month declaring that global airline business now looks like it will make a net profit of $2.5 billion during 2010.

IATA chief executive, Giovanni Bisignani, urged caution. He pointed out that the world’s airline industry was still a long way from being able to announce sustained profitability. He added that it was the job of everyone in the industry now to concentrate on nurturing the recovery by improving demand, and above all, controlling costs.