AIR passenger figures from February have virtually wiped out the positive growth seen in January according to the Department of Infrastructure.
There was a 3.6 percent decrease in passengers travelling in and out of Ronaldsway last month compared to January.
This was also a reduction compared to the same time period last year with 49,126 passengers travelling compared to 50,955.
Airport director Ann Reynolds said: "With the difficulties experienced last year hopefully behind us we had expected a small growth in passenger traffic. It seems that demand is taking longer than we expected to regenerate and airlines operating some of our primary routes are still struggling to fill aircraft during this, the quietest time of the year.
"February 2010 was also relatively strong with a 1.8 percent increase over 2009 but the decreases last month experienced on some of our key routes – Manchester, London City, Birmingham and Dublin – were more than we had forecast."
Passenger traffic to Manchester reduced by 16.5 percent and to Birmingham by 12.5 percent. The London City route saw a reduction in passengers of more than 1,400 due to operating an aircraft with significantly reduced capacity.
However the Liverpool route increased with 11,600 passengers travelling with Flybe and easyJet. Routes operated by Manx2.com also showed encouraging signs despite reducing capacity. On four out of five routes Manx2.com achieved between 60 percent and 70 percent occupancy.
The Scottish routes operated for Flybe by Loganair also produced improved results with the Edinburgh route increasing by 18 percent. The Glasgow route sold almost two thirds of the seats on the route over the month.
Ann continued: "It is clearly taking more time for the airport to return to consistent growth. The spring and early summer period will be a key time for us and will shape the likely outcome for 2011.
"All the indications still give us cause for optimism, as early bookings for this busier period remain relatively strong, but it may take a little longer to achieve consistent month-on-month growth."
Infrastructure Minister Phil Gawne MHK said: "Our objective has been to try to retain the integrity of our route network as far as possible to provide the foundation for growth in better times.
"We have only seen one route dropped and another, Belfast International, consolidated at Belfast City, so our airline partners have resolutely stuck with us during times that have been economically very tough.
"We are extremely grateful for their loyalty to the Isle of Man over a long and difficult period and very much hope that their confidence in the Island’s air travel market will be rewarded with a buoyant and successful 2011 summer season."