Global airline passenger traffic results for February showed a rebound in growth following slower demand seen in the previous month.
However, Iata warned that continued growth will be "tempered" for the rest of the year.
Latest figures from the airline trade body show 7.6% growth in February, up from 4.6% year-on-year in January, based on total revenue passenger kilometres.
Iata director general and chief executive, Alexandre de Juniac, said: "As expected, we saw a return to stronger demand growth in February, after the temporary slowdown in January.
"This is being supported by the robust economic backdrop and solid business confidence.
"However, increases in fuel prices "“ and labour costs in some countries "“ likely will temper the amount of traffic stimulation from lower air fares this year."
He added: "Aviation has helped to lift millions from poverty, but for aviation to deliver even greater benefits in future, adequate, affordable infrastructure is a must.
"A case in point is the Latin American region, where aviation already supports jobs for 5 million people and $170 billion in GDP.
"The potential for aviation to do far more exists, but without concerted action by governments to address capacity shortfalls, the region could face an infrastructure crisis in the future.
"Within the region, Mexico City is the most critical of the bottlenecks. The current airport was designed for 32 million passengers annually but serves 47 million…
