An industry trade association more than tripled its profit forecast for the world's airlines, to $8.9 billion, this year, citing steady gains in passenger demand and a strong rebound in the air freight market. Air traffic is growing apace with economic growth in most regions. But the International Air Transport Association warned that the outlook for 2011 remained uncertain, particularly in Europe and North America, as the effects of government economic stimulus measures began to fade. Lingering concerns about the sustainability of the current upturn are likely to reduce profits next year, to around $5.3 billion, the association said. 'The industry recovery has been stronger and faster than anyone predicted,' said Giovanni Bisignani, the association's director general. But he cautioned that with margins still at a 'razor-thin' average of 1.6 percent and fuel costs still representing about a quarter of operating costs, the industry could be approaching a near-term peak in profitability. 'This year is as good as it gets,' Bisignani said. 'This is the peak of the cycle.' The association, an industry group based in Geneva, forecast in June a 2010 global profit of $2.5 billion, a sharp improvement from the $2.8 billion loss it predicted just three months earlier. The industry had a collective loss of $9.9 billion in 2009, down from a $16 billion loss in 2008. The world's airlines were last profitable in 2007, when they reported combined earnings of $12.9 billion. Demand for airline tickets was continuing to outpace the number of available seats, driving up fares worldwide. The association said demand was expected to rise 11 percent this year, while capacity would expand only 7 percent. As a result, the association forecast that airline revenue would climb 16 percent in 2010, to $560 billion, from $483 billion in 2009. That would be slightly below the $564 billion in revenue in 2008. In 2011, growth in passenger demand was expected to slip around 5 percent, while seat capacity was expected to rise 6 percent. However, the association said it predicted that collective revenue would continue to rise, to $591 billion. 