Global airline profits to surge to $18bn says IATA

“There is a mismatch between the value that the industry contributes to economies and the rewards that generates for those who risk their capital to finance the industry."

North American airlines were forecast to enjoy the highest collective net profits with $9.2bn, giving a margin of 4.3pc, while European airlines were in line for profits of just $2.8bn or a margin of 1.3pc.

High regulatory and infrastructure costs in Europe continue to hold back profitability despite “considerable efficiency gains”, Mr Tyler said, while inefficient use of airspace is harming carriers in both Europe and the Middle East.

A slowdown in world trade and a fall in business during the first quarter of the year, due to concerns over China's economic growth and geopolitical risks, demonstrates that the industry is still in a “fragile” state, said Brian Pearce, the IATA’s chief economist.

He added that the consistently high price of fuel has harmed companies’ profitability, with jet fuel remaining above $120 per barrel on average since 2011.

“In many ways it is remarkable that airlines are managing to generate profits in this sort of environment,” he said.

An upturn in demand for air cargo has flattened off in recent months, he added, while demand from passengers has remained robust at the back but not the front end of the aircraft.

“It does look as if business travellers are hesitating, reflecting the fall in business confidence we saw at the beginning of this year,” he said. “We think this is a temporary dip but there are some areas of softness in the current expansion.”

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