Global airlines are expected to post record profits of almost $40 billion this year, the head of industry body IATA said yesterday, but he warned the sector faced threats from terrorism, a sharp rise in oil prices and protectionism. Alexandre de Juniac, who took the reins at the International Air Transport Association on Sept. 1, also called on Southeast Asian nations to invest in infrastructure to cope with surging demand for air travel in the fast-growing region.

The former Air France-KLM chief executive told the group's symposium in Singapore that collective net profit for the airline industry worldwide would hit $39.4 billion, up from $35.3 billion in 2015. IATA data shows that the fuel bill for airlines worldwide is expected to fall to $127 billion this year, down 44 percent from 2014 when oil prices peaked at more than $100 a barrel.