"Recent severe weather in the Americas only had a temporary impact on the healthy travel demand we have seen this year", confirmed International Air Transport Association (IATA) Director General and CEO Alexandre de Juniac, "We remain on course for another year of above-trend growth".
While there will be growth in passenger and cargo demand, Iata's chief economist Brian Pearce warned that intense competition will continue to put pressure on passenger yields.
North American airlines are once again primed to record the highest profits in the industry.
"It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", Mr de Juniac noted.
"Despite the challenges, there is positive momentum heading into 2018".
But this still represents slower growth than 2017, which has proved to be a bumper year for the aviation industry.
To continue to deliver on our full potential, governments need to raise their game-implementing global standards on security, finding a reasonable level of taxation, delivering smarter regulation and building the cost-efficient infrastructure to accommodate growing demand.
IATA represents around 275 airlines comprising 83 per cent of global air traffic.
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"Overall unit costs are expected to grow by 4.3 per cent in 2018 [a significant acceleration on the 1.7 per cent increase in 2017]".
Yesterday, Ryanair said that its passenger numbers rose 6pc to 9.3 million in November, with its load factor one point higher at 96pc.
In 2017, IATA said airlines hit a new record of over 20,000 city-pair connections, up by 1,351 from 2016.
Global demand rose 7.2 percent in October, measured against the same month previous year, after hurricanes in the Caribbean and southern United States had pegged back demand in September.
Demand will also overtake expected capacity growth of 5.7 per cent.
He expects China, India and Indonesia to lead the way in terms of passenger volume growth in 2018.
All regions, except North America, improved load factors during the month, with an overall 0.8 percentage point increase to 80.8 percent. It is based on data provided by IATA member airlines during October 2017.
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. As a result, operating margins will decline from 8.3% this year to 8.1%, according to the forecast.