However, the renewals that did take place showed double-digit decreases in insurance charges. Average premium charges fell 14 percent, according to the report.

A primary driver of the decreases was losses, which dropped from $240 million for the first quarter last year to $149 million.

The report also said continued consolidation of the industry contributed to the decreases, citing the approved merger of Air France and KLM, as one example.

Airplane hull coverage against war activity also saw steep declines in the quarter, going down by 30 percent, the report said. Overall premium levels stand at $170 million for this coverage.

Attempts by insurers to eliminate coverage for dirty bombs, biological and chemical materials, and electromagnetic pulse under the war, hijacking and other perils clause have met with heavy resistance from brokers, the report noted.

The report said that the small representation of the aviation market is not a sufficient indicator of where the market is going. Traditionally, April has been a better indicator of where the market is going.

"The continuing fall in the value of claims for the first quarter of 2004 is very encouraging news for the airline sector, particularly on the back of 2003, which in itself represented the lowest level of losses in airline insurance history," said Steve Doyle, Manager of Aon's Aviation Global Practice Group in a statement.