Global airline passenger demand slipped back to 5.3% in September against the August rise of 6.3%, latest Iata figures show.
The organisation expects airlines will deliver an $18 billion net profit on revenues of $746 billion for a 2.4% net profit margin in 2014.
This comes amid concerns over Ebola risks and weakening economies in parts of the world.
Iata director general and chief executive, Tony Tyler, said: “There are a lot of risks out there – growing weakness in key economies such as Europe and Brazil, the potential threat of Ebola to public confidence in flying, and the impact of political instability in various parts of the world.
“The positive economic developments in Asia and the US continue to underpin profitability. But it is a delicate balancing act.”
European airlines reported 3.9% growth for international demand in September – a significant drop from the 7.0% reported in August. This reflected the impact of the Air France pilots’ strike and a general weakening of European economic prospects.
Year-on-year growth for Russian domestic demand fell to 5.6% in September from 10.1% in August. The impact of price stimulus wore off and the weakness revealed could be a first indicator of the economic impact of the Russia-Ukraine crisis.
Indian domestic travel spiked with a 26.3% growth in September against the 7.6% growth recorded in August, as a result of price stimulation.
Tyler said that demand for passenger travel was growing in line with expectations.
“We saw, however, some shifting of the sources of that growth in September, largely driven by economic factors,” he said.
“The strengthening of the US and Asian economies was offset by weakness in Europe and Latin America. The three big stories in September were Europe, Russia and India.”
Tyler added: “It’s an interesting time for the global air transport industry, highlighting the complex vulnerabilities of the business.
“The fall in the price of oil is a good example. It is good news for an industry that spends a third of its operating budget on fuel. The full impact of the price drop will only be realised over time because of a time lag built into jet fuel pricing.
“And it could even be an indicator of difficulties ahead if the fall is driven by declining demand for oil rather than rising supply capacity.”