Global air travel rose 7.6% last year, which was well above the 10-year average of 5.5%, according to the International Air Transport Association.
As capacity rose only 6.3%, load factors climbed to a record calendar-year high of 81.4%.
"2017 got off to a very strong start and largely stayed that way throughout the year, sustained by a broad-based pick-up in economic conditions," said IATA director general Alexandre de Juniac.
However, he said the level of growth was unlikely to be sustained this year.
"While the underlying economic outlook remains supportive in 2018, rising cost inputs, most notably fuel, suggest we are unlikely to see the same degree of demand stimulation from lower fares that occurred in the first part of 2017," added de Juniac.
All regions recorded year-on-year increases in demand, led by the Asia Pacific and Latin American regions. In Europe, international traffic climbed 8.2%, while load factors reached 84.4%, the highest for any region.
Only the Middle East saw a slowdown in annual growth and the region’s share of global traffic fell for the first time in 20 years following the US travel bans that affected certain Muslim countries and a temporary ban on personal electrical devices in aircraft cabins.
North American airlines had their fastest demand growth since 2011, with full year traffic rising 4.8% compared to 2016.
