In response to the tougher conditions regional carriers have cut costs and unprofitable routes, with Dubai carrier Emirates reporting a 111 per cent increase in profit to $214m in the April 1 to September 30 period after a 75 per cent slump in the first half of its previous fiscal year.
This was contained in IATA's latest analysis of demand for passenger air transport.
"As expected, the recent severe weather in the Americas region had only a temporary impact on the healthy travel demand we have seen this year, and we remain on course for another year of above-trend growth", Alexandre de Juniac, IATA director general and CEO, said.
Chief marketing officer Kenny Jacobs said the increase in passenger numbers in November was due to lower fares.
Cargo demand is also expected to grow, with the amount to cargo carried predicted to rise to 62.5 million tonnes-up from 59.9 million tonnes in 2017.
In Europe, capacity increased 4.5pc year-on-year in October, while the overall load factor was 1.3 percentage points higher at 84.9pc.
Middle East carriers achieved a 6.9% rise in demand in October, improved from 3.9% in September, while North American airline carryings rose by 3.7% in October.
With global profitability now on a more sustainable footing, IATA said airlines' main focus was on keeping costs under control, with rising fuel prices and labour costs set to weigh. Capacity climbed 9.1%, and load factor slipped 0.3 percentage points to 82.6%.
"More people than ever are traveling", he said. "This is a critical activity for the global economy", said Mr de Juniac.
IATA said demand to and from North America in particular fell in year-on-year terms for the seventh consecutive month. "The fuel bill is expected to be 20.5% of total costs in 2018, up from 18.8% in 2017", he explained.
Oil prices are expected to average $60 a barrel for Brent Crude in 2018, up 10.7 per cent from $54.2 per barrel in 2017, according to IATA.
Moneycontrol News India's domestic air traffic beat China's growth by double, according to data from the International Air Transport Association (IATA) on Monday.
Total capacity climbed by six per cent in the global passenger market segment, while load factor increased one percentage point to 79.4 per cent y-o-y, it said.
"The focus is really on the pressure from cost (increases)", said Pearce.