The world's airlines are expected to post losses of $11 billion this year, as weak passenger traffic and cargo demand pressures revenue, the International Air Transport Association said on Tuesday.

The revised forecast is $2 billion worse than the previous projection for losses of $9 billion due to rising fuel prices and weak yields, the association said in a statement.

The Geneva-based airline trade group also forecast that the industry would post losses of $3.8 billion in 2010.

(Reporting by John Crawley and Karen Jacobs; Editing by Maureen Bavdek)