Cross-border air freight traffic grew a meagre 1.3 percent year-on-year in May, according to airline industry figures that suggest high oil prices are damping international trade flows.

The International Air Transport Association (IATA) said the sluggish cargo growth -- compared with 4.3 percent growth in the full-year 2007 -- also reflected the impact of an earthquake in China and weakness in the Japanese economy.

Cross-border air traffic, which IATA measures in freight tonne kilometres, is considered a leading indicator of the health of world trade.

Passenger traffic was recorded rising 6 percent year-on-year in May, also weakening from a 7.4 percent annual rate for 2007. The price of jet fuel averaged USD$160 a barrel in the month, 87 percent higher than in May 2007, IATA said.

"The high price of oil is re-shaping the industry. The major shifts in traffic flows experienced during May reflect this," IATA Director General Giovanni Bisignani said in a statement.

IATA represents about 230 airlines operating 93 percent of scheduled international air traffic. Domestic flights are excluded from its data, which is released monthly.