The International Air Transport Association forecasts global industry net profit to rise to $38.4 billion in 2018, an improvement from the $34.5b expected net profit in 2017.
"Airlines with low levels of hedging (in the USA and China for example) are likely to feel the impact of this increase more immediately than those with higher average hedging ratios (Europe)", IATA said.
The fuel bill is expected to be 20.5 per cent of total costs in 2018 (up from 18.8 per cent in 2017).
Strong demand, efficiency and reduced interest payments will help airlines improve net profitability next year, despite rising costs.
Staff wages are also on the rise, with labor costs likely to comprise 30.9 per cent of all airline costs in 2018, making it a larger component than fuel.
IATA expects passenger numbers to exceed 4.3 billion in 2018.
The count of incidents involving unruly travelers has increased in recent years, with the IATA previously saying that carriers are having to teach crews on how to deal with physical and verbal abuse.
"These are good times for the global air transport industry", de Juniac said in a statement.
Further, de Juniac said the industry remained committed to safety and had a clear strategy to reduce its environmental footprint.
Serious episodes involving intoxicated and/or threatening airline passengers are on the rise, and airline crews are increasingly having to resort to physically constraining more of them.
He added that there is need to invest more in modern infrastructure to cater for the growing demand for air transport on the continent. The Africa region is expected to support demand growth of 8 per cent in 2018, slightly outpacing the announced capacity expansion of 7.5 per cent.
Overall, reported incidents declined almost 10 percent in 2016 to 9,837, but the number viewed as higher risk rose from the previous year, the association said.
The cargo business continued to benefit from a strong cyclical upturn in volumes, with some recovery in yields.
The 2018 result would be achieved on revenues totalling US$824 billion - an increase of 9.4 per cent from expected revenues of US$754 billion in calendar 2017 - which equates to a net profit margin of 4.2 per cent.