Declining airline revenues will continue to squeeze suppliers in the aeropace industry. The gap between profitability and losses will be evident next Tuesday.

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The Air Transport Association of America said just 2 percent fewer passengers flew on U.S. airlines in September compared with September 2008, but the decline moderated from a 5 percent decline in August. The cost of flying was down 18 percent in September, compared with August's 17 percent decline in fares.

Fewer passengers and reduced prices conspired to shrink passenger revenue by 19 percent in September 2009, compared with the same month in 2008. In August, passenger revenue was down 21 percent.

"The demand for air travel remains weak, as evidenced by the untenable pricing environment," said association president and CEO James May. "While other sectors may be seeing signs that the economy is getting back on track, the airline industry has faced challenges in its effort to generate revenue."

The association also reported a decline in global cargo traffic, which also reflects a weak global economy. U.S. airlines saw August cargo revenue ton miles decline 12 percent year over year, 11 percent domestically. It was the 13th consecutive month of declining volumes.