The global airline companies are set to earn a net profit of $18 billion in 2014 for a net profit margin of 2.4% compared to $10.6 billion last year and up from earnings of $6.1 billion in 2012, said a report from the International Air Transport Association (IATA).

Regional wise, Middle East airlines were expected to deliver a net profit of $1.6 billion, representing a profit per passenger of $8.98 and a margin on revenues of 2.6%.

IATA pointed out that the average yields were low but unit costs were even lower, partly driven by the strength of capacity growth; 13% this year.

The strong growth is being accommodated by major developments of airport infrastructure, particularly in the Gulf region. Airspace capacity in the Gulf, however, is not keeping pace with the growth of the industry.

The resulting days are a burden to the efficiency of the connectivity that the Gulf carriers are providing over their hubs. A more coordinated approach to managing the region’s limited airspace is needed, it added.

The global spend on air transport is expected to reach $746 billion in 2014, which equals 1% of world GDP driven by a surge in passenger growth poised to hit 3.3 billion by year end.

IATA on Monday launched the “Economic Performance of the Airline Industry” report outlining how air transport is adding value for consumers, the wider economy, governments, and investors.

The global aviation body in its report illustrates how the airline industry continues to improve profitability through efficiency gains while connecting more cities, lowering transport costs, supporting jobs, and making major investments.

The number of passengers is expected to reach 3.3 billion as travelers benefit from a growing global network and airfares that are expected to fall 3.5% in real terms (after inflation). Businesses are also benefiting from the growth in connectivity and a four per cent fall in freight rates, after inflation.

The catalytic benefits of aviation are illustrated by the $621 billion in tourism spend that the industry will facilitate over the course of the year, as well as the $6.8 trillion worth of goods that will be delivered by air. Employment supported by aviation has reached some 58 million jobs worldwide.

In addition, airlines were making enormous investments in modernizing fleets. This year, the industry will take delivery of 1,400 aircraft worth some $150 billion, it added. These benefits are being generated and investments being made, despite persistent weak profitability and a tax burden which this year is expected to reach $121 billion (up from $113 in 2013).