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.