Airline earnings this year are likely to be 63 percent higher than previously forecast as capacity cuts and mergers prompted by the economic slump take hold, the International Air Transport Association said.

Industry-wide net income should reach $6.7 billion, versus a forecast of $4.1 billion in October, IATA said. Profit next year may increase to $8.4 billion, $900 million more than last predicted though still short of the $8.8 billion return in 2011.