IATA revises its outlook for airline industry profit to $18.7B, lower than a previous forecast calling for $19.7B in profits.
The agency cites higher oil prices and a lack of international alignment of passenger rights as factors in the downward revision.
Cargo demand is forecast to improve 4% in 2014.
By region, North America is expect to see carriers generate the sweetest margins. The anticipated profit of $8.6B by North American airliners is more than double what counterparts in Europe will earn this year, says IATA.