File photo of KML Boeing 777-200ER passenger jet. This model will schedule the KLM Amsterdam-Hangzhou flights. [China.org.cn]

The improvement was largely driven by a much stronger recovery in demand seen by year-end gains that continued into the first months of 2010, IATA said.

"We are seeing a definite two-speed industry. Asia and Latin America are driving the recovery. The weakest international markets are North Atlantic and intra-Europe which have continuously contracted since mid-2008," said Giovanni Bisignani, IATA's director-general and CEO.

Boeing said on Monday that it would accelerate planned production rate increases on both the B777 and 747 programs to support increasing customer demand in the recovering sector.

The US aircraft manufacturer plans to increase monthly production of the B777 from five to seven in mid-2011, six months earlier than its original plan.

By mid-2012, it will produce two B747s per month, up from 1.5 per month, about one year ahead of its previous schedule.

Its European rival Airbus said on March 9 that it will increase the monthly production rate of the A320 from 34 to 36, starting in December this year, as leading economic and business confidence indicators continue to demonstrate an upward trend.