The International Air Transport Association (IATA) has halved its forecast losses for the beleaguered industry this year.
It is predicting losses of $US2.8 billion this year, as a stronger-than-expected recovery in travel demand at the end of last year has continued into this year.
The industry body says growth in international patronage is helping air carriers in Asia and Latin America but demand remains weak in North America and Europe, the BBC reports.
IATA also lowered last year's expected losses from $US11bn to $US9.4bn.
