While passenger numbers will rise six per cent next year, this year has seen an increase of 7.5 per cent. More people than ever are travelling. She highlighted examples such as for the last mile for small parcel deliveries, transporting goods to remote or isolated areas and on routes which are not economically viable for larger aircraft. A strong upcycle in the cargo markets will also support the expected profit improvement next year, it added.
IATA said the forecast increase in passenger fares was in line with expected inflation.
The price of jet fuel is expected to increase 12.5 per cent from $65.6 in 2017 to $73.8 in 2018.
"Demand for air freight grew by 5.9% in October". Demand to and from North America fell in year-on-year terms for the seventh consecutive month in September (the most recent month for which route-specific figures are available) and it remains the only global market not to have grown in annual terms this year. "It's still, however, a tough business and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he told a media briefing here yesterday.More news: Undocumented immigrant acquitted in Kate Steinle death
IATA has estimated 2018 airline capacity growth to be 3.4 percent for North America, just shy of the region's forecast traffic growth of 3.5 percent. Meanwhile, rising labor costs are expected to account for 30.9 percent of airlines' total costs during 2018.
The forecast growth rates are slower than the 7.5% y-o-y seen in 2017 for passengers and the 9.3% cargo volume growth expected this year.
"The industry also faces longer-term challenges", de Juniac acknowledged.
The IATA said the higher revenues are due in part to more passengers and more cargo.More news: Man Utd star Paul Pogba reveals why he used to support Arsenal
"On the other hand, the airline capacity growth in the other Asean markets is more aggressive, namely Singapore, Vietnam, the Philippines and Brunei. To continue to deliver on our full potential, governments need to raise their game-implementing global standards on security, finding a reasonable level of taxation, delivering smarter regulation and building the cost-efficient infrastructure to accommodate growing demand", de Juniac said.
He said the benefits of aviation are compelling, with the industry supporting 2.7 million direct jobs and providing support for 3.5 percent of global economic activity.
October global passenger demand rose 7.3% compared to October 2016, which was an improvement compared to the 6.6% demand increase for September.More news: Former Trump Adviser Flynn Pleads Guilty To Lying To FBI