The global airline industry has revised its profit upwards to £27.3bn ($39.4bn), citing low oil prices and consistently high passenger demand.
The International Air Transport Association (IATA) said over half of the profits - £15.9bn - would be generated in North America, while African carriers are expected to see an overall loss of £346m.
The outlook is based on oil averaging $45 a barrel (crude is currently sitting just below $50 a barrel). The low oil price will mean that fuel is expected to represent 19.7% of the industry's expense, down from a recent high of 33.1% in 2012-13.
Airlines also expect to see a 6.2% growth in passenger numbers this year. That is down from the 7.4% growth last year but load factors (how much of an airline's carrying capacity is used) are still expected to remain high, at 80%.
IATA, which represents some 265 airlines and 83% of global air traffic, says the number of direct airline jobs is also expected to rise - up 2.8% to 2.61 million.
The European airline market is expected to post a £5.2bn profit this year, despite the "dampening effect on demand in some key tourist centres" due to terrorist attacks.
The report says that competition in the European airline market is "intense" but "the burdens of high taxes, onerous regulation and inefficient infrastructure, particularly air traffic management, have yet to be meaningfully addressed".
Tony Tyler, IATA's director general and chief executive, said lower oil prices were "certainly helping" many of the world's airlines but he added that these were "tempered by hedging and exchange rates".
"In fact, we are probably nearing the peak of the positive stimulus from lower prices.
"Performance, however, is being bolstered by the hard work of airlines. Load factors are at record levels.
"New value streams are increasing ancillary revenues and joint ventures and other forms of cooperation are improving efficiency and increasing consumer choice while fostering robust competition.
"The result: consumers are getting a great deal and investors are finally beginning to see the rewards they deserve."
The International Air Transport Association (IATA) said over half of the profits - £15.9bn - would be generated in North America, while African carriers are expected to see an overall loss of £346m.
The outlook is based on oil averaging $45 a barrel (crude is currently sitting just below $50 a barrel). The low oil price will mean that fuel is expected to represent 19.7% of the industry's expense, down from a recent high of 33.1% in 2012-13.
Airlines also expect to see a 6.2% growth in passenger numbers this year. That is down from the 7.4% growth last year but load factors (how much of an airline's carrying capacity is used) are still expected to remain high, at 80%.
IATA, which represents some 265 airlines and 83% of global air traffic, says the number of direct airline jobs is also expected to rise - up 2.8% to 2.61 million.
The European airline market is expected to post a £5.2bn profit this year, despite the "dampening effect on demand in some key tourist centres" due to terrorist attacks.
The report says that competition in the European airline market is "intense" but "the burdens of high taxes, onerous regulation and inefficient infrastructure, particularly air traffic management, have yet to be meaningfully addressed".
Tony Tyler, IATA's director general and chief executive, said lower oil prices were "certainly helping" many of the world's airlines but he added that these were "tempered by hedging and exchange rates".
"In fact, we are probably nearing the peak of the positive stimulus from lower prices.
"Performance, however, is being bolstered by the hard work of airlines. Load factors are at record levels.
"New value streams are increasing ancillary revenues and joint ventures and other forms of cooperation are improving efficiency and increasing consumer choice while fostering robust competition.
"The result: consumers are getting a great deal and investors are finally beginning to see the rewards they deserve."
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