Airline fares could drop by as much as 5% in 2015, the International Air Transport Association (Iata) has said.
Cheaper fuel and growth in the number of passengers has brought in greater profits to the airlines.
Iata says it expects the global airline industry to report a record $25bn (£15.9bn) profit next year.
"The industry outlook is improving. The global economy continues to recover and the fall in oil prices should strengthen the upturn next year," said Iata director general Tony Tyler. But he also noted that political unrest, conflicts and some weak regional economies all posed a risk.
North American airlines were expected to have the greatest profit margins, with European ones showing weaker margins which Iata blamed on "high regulatory costs, infrastructure inefficiency and onerous taxation".
Brent crude oil has plummeted more than 40% since June, slipping to $66 a barrel, a price it has not been for the last five years.
Iata said it expected airlines to spend $192bn on fuel next year, down from an expected $204bn this year.
The industry body Iata represents 250 airlines, accounting for 84% of global air traffic.
