GENEVA - Struggling airlines faced more trouble in November, with passenger numbers down and freight hit by a "shocking" 13.5 percent fall, industry group IATA said Tuesday, warning of heavy losses.

"The industry is now shrinking by all measures ... We can expect deep losses in the fourth quarter," IATA chief Giovanni Bisignani said.

International air passenger traffic in November was down 4.6 percent from a year earlier, marking the steepest fall in the past three months.

In October, passenger traffic was down 1.3 percent after a fall of 2.9 percent in September, the International Air Transport Association noted.

Meanwhile, international cargo traffic in November saw its largest drop since the September 11, 2001 terrorist attacks.

"The 13.5 percent drop in international cargo is shocking. As air cargo (accounts for) 35 percent of the value of goods traded internationally, it clearly shows the rapid fall in global trade and the broadening impact of the economic slowdown," said Bisignani.

IATA said earlier this month that it expects the industry to lose $2.5 billion (1.9 billion euros) in 2009 due to the economic crisis after losses of some $5.0 billion this year.