After three years of misery, the global airline industry should level out this year with Europe and North America enjoying a recovery before Asia, according to a report issued Monday.

The Montreal-based International Civil Aviation Organization said it expects global air traffic to grow by 4.4 per cent in 2004 and 6.3 per cent in 2005.

The rate of recovery will vary be region with North American and European carriers expected to bounce back more quickly than their Asian counterparts who are still battling the stigma of the SARS virus.

"Traffic development of both North American and European carriers is stabilizing, with an expected zero growth in 2003 before recovery gets fully under way in 2004 and 2005," the ICAO said in its forecast.

"North American carriers were hardest hit by the shrinking demand following 11 September 2001, and their passenger traffic is expected to recover to year 2000 levels only by 2004."

The Asia and the Pacific region is expected to suffer a further decline of 0.8 per cent this year, before rebounding with growth of 4.9 per cent in 2004 and 6.8 per cent in 2005.

In 2001 the global airline industry was already struggling through a rough patch before the terrorist attacks of Sept. 11. According to the ICAO, passenger traffic, as measured by passenger-kilometres performed, fell by 2.9 per cent. In 2002, traffic remained almost flat, with a marginal increase of 0.4 per cent.

"Traffic fell in the first part of 2003 because of the war (in Iraq) and particularly the impact of concerns regarding severe acute respiratory syndrome," the ICAO said.