The organisation - which represents more than 270 airlines accounting for 83pc of global air passenger traffic - said that passenger demand jumped 7.2pc in October compared to October 2016, with demand in Europe rising 6.2pc year-on-year.
North American airlines will make $16.4 billion in 2018, according to the IATA forecast, up from this year's projected net profit of $15.6 billion and more than any other region in the world.
"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", said Alexandre de Juniac, IATA's Director General and Chief Executive in the report.
This was contained in the International Air Transport Association's (IATA).
"Safety performance is solid".
"It is still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he said.
De Juniac urged governments to "raise their game" and do more to ensure infrastructure can cope with higher aviation demand. "Aviation is the business of freedom and a catalyst for growth and development", he said, adding the industry benefits to the economy include 2.7 million direct jobs and support for 3.5 percent of global economic activity.
The global air transport industry predicts a continued upturn next year with greater profitability, propelled by positive factors including worldwide economic growth. The increase in fares was in line with expected inflation.
A rise in overall revenues to $824 billion, up 9.4% on 2017 revenues of $754 billion. A rise in cargo carried to 62.5 million tonnes (up 4.5 per cent on the 59.9 million tonnes in 2017).
North American airlines are set for record profit in 2018, thanks in part to European growth.
Global tourists travelling by air are expected to spend more than $750 billion in 2018, a rise of 15% in just over 2 years. De Juniac has said insolvency filings at carriers including Air Berlin Plc and Alitalia SpA reflect over-capacity rather than market weakness. Revenues from the passenger business are forecast to grow to $581bn, up 9.2 per cent on $532bn expected in 2017, according to Iata.
Passenger demand next year is forecast to grow 7.0 per cent, amid the slowest announced capacity expansion seen since 2002 at 4.9 per cent.
This is especially impressive considering that October was the 38th consecutive month of double-digit passenger percentage growth for India.