World airlines’ body IATA on Monday projected an over $4 billion hike in the global aviation industry profits this year compared to last year, saying the performance could have been better had it not been for the oil price hike and “disappointing” growth in key emerging markets.

The International Air Transport Association (IATA) said the global industry would earn net profit of $11.7 billion on revenues of $708 billion this year, compared to $7.4 billion in 2012.

However, it downgraded its earlier projection for this year of $12.7 billion profit to $11.7 billion due to the impact of the oil price spike associated with the Syrian crisis and disappointing growth in many key emerging markets.

The 2013 performance is considerably better than the $7.4 billion net profit of 2012. “The upward trend should continue into 2014 when airlines are expected to return a net profit of $16.4 billion. This would make 2014 the second strongest year this century after the record breaking $19.2 billion profit in 2010,” IATA’s latest industry outlook said.

“Airlines are demonstrating that they can be profitable in adverse business conditions. Efficiencies are being generated through myriad actions - consolidation, joint ventures, operational improvements, new market development, product innovations and much more,” IATA Director General and CEO Tony Tyler said.

The projections, released in Montreal by Tyler today, downgraded the outlook for Asia-Pacific airlines “by $ 1.5 billion to $3.1 billion profits” as it was largely driven by slower growth among the region’s emerging economies.

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