Led by US airlines, net profits in the aviation industry are set to rise by some 11 percent in 2018, the International Air Transport Association (IATA) said on Tuesday as it presented economic forecasts for the industry.

According to the forecast by the industry's global trade association, combined net profits will hit $38.4 billion, from a revised $34.5 billion in 2017, with US carriers weighing in with almost half.

"Strong demand, efficiency and reduced interest payments will help airlines improve net profitability in 2018 despite rising (operating) costs," said IATA, whose 280 members account for more than three quarters of global air traffic.