“It doesn’t take much of things moving and other input variables for airlines' profitability to have pressure,” Mr Joyce said.

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In contrast, there were healthy profits being made in other industries that piggybacked on the airline industry, he said, such as aircraft manufacturers, travel agents, and in particularly, airports.

Qantas and Virgin Australia and Air New Zealand last week launched a campaign targeting airports over what they say are unfairly high charges.

“The profitability of those other values are way in excess of what airlines are getting," Mr Joyce said. “There’s a lot more profitability in the chain that we think needs to be shared fairly.”

The oil price is expected to average $US70 a barrel this year, up from $US54.90 a barrel last year and its previous expectation of $US60 a barrel.

Air fares were expected to rise by 3.2 per cent this year, in the first annual gain since 2011, driven by growth in demand helped by a stronger economy, IATA said.

Mr de Juniac warned that passenger numbers would be hit if global trade tensions continued to rise.

“Barriers to trade and travel are bad news,” he said. “We haven’t faced any significant decline in passengers and cargo relating to trade wars or to protectionist barriers up to now. But if it continues, it will happen.”

Mr Joyce said Qantas had seen significant increases in travel and cargo with each country Australia had signed free-trade agreements with, and a “watchful eye” needed to be kept on trade barriers being erected.

If correct, the industry’s profit of $33.8 billion will be the lowest since 2014, but the fourth highest in the past 14 years. Airline profits will be high enough to cover the industry's high cost of capital for a fourth year, helping to attract investment for new fleets and infrastructure.

with Reuters