A leading international airlines industry body on Thursday said it expected the sector's net profit to rise by 10% from $33 billion in 2015 to $36.3 billion in 2016.
The figures were revealed by International Air Transport Association (IATA) in its airline industry outlook for 2016 which sees an average net profit margin of 5.1% which is expected to generate a total net profit of $36.3 billion in 2016.
"The airline industry is delivering solid financial and operational performance. Passengers are benefiting from greater value than ever-with competitive airfares and product investments," said Tony Tyler, director general and chief executive, IATA.
In addition, the global aviation industry body revised its airline industry outlook for 2015 upwards to a net profit of $33 billion.
IATA cited low oil prices, strong passenger demand, healthy performance of major economies and operational efficiencies achieved by airlines as some of the factors behind its positive outlook for 2016.
Furthermore it predicted that in 2016 total passenger numbers are expected to rise to 3.8 billion travelling over 54,000 routes.
The airline outlook for next year revealed that the passenger capacity growth in Asia-Pacific region is expected to accelerate as new aircraft are delivered in major emerging markets such as India.
"Passenger capacity growth is expected to accelerate from 6 percent in 2015 to 8.4 percent in 2016 as new aircraft are delivered largely to accommodate growth in the major emerging markets of India, Indonesia and China," IATA said in its airline industry outlook for next year.
