August saw a 5.3% year-on-year fall in Hong Kong International Airport's passenger volume, to 4.2 million, while cargo throughput and aircraft movements dropped 3.9% to 311,000 tonnes and 0.5% to 25,430, the Airport Authority says.

The month's visitor traffic to Hong Kong slowed, with slight growth in outbound travel by Hong Kong residents. Cargo exports and imports contracted despite growth in transshipments to and from North America and the Mainland.

The authority's Chief Executive Officer Stanley Hui said high fuel prices, rising inflationary pressures and global financial volatility was exerting pressure on the aviation industry. The tightening of Mainland visa applications due to the Olympics also contributed to lower passenger and cargo figures.

"The operating environment for the rest of the year will continue to be difficult, we will work with our business partners to equip the airport for long-term growth," he said.

For the 12 months ending August, passenger and cargo throughput reached 49.3 million and 3.8 million tonnes, up 6% and 5.2% on a year earlier. Air traffic movements also grew 4.3% to 302,340.