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The International Air Transport Association (IATA) has praised China's aviation industry's sparkling performance over the past year.

Giovanni Bisignani, director general and CEO of the IATA, said that in 2007, he expects airlines in the region to record a profit of $5 billion - leaving plenty of room to grow.

"A profit of $5 billion is peanuts and the challenge for us is to turn peanuts into sustainable profits," Bisignani said in his inaugural address at the IATA annual general meeting in Vancouver earlier this month.

"China has an important role in the industry today, and is a future global leader for air transport," he added.

Bisignani praised China for being one of the world's top users of electronic plane tickets. Eighteen months after kicking off the program, 95 percent of tickets issued by Chinese airlines are e-tickets.

Last year, 332 million passengers traveled through Chinese airports. To cope with the demand, 50 new airports will be built to supplement the current 147, while Chinese carriers increase their fleets by 15 percent.

"Advances in aviation (in China) are moving at a breath-taking pace," said Marion Blakey of the US Federal Aviation Administration.

She added that the US and China will intensify cooperation in the field of aviation of both civil and military use.

With regards to the environment, Bisignani challenged the aviation industry reach a zero emissions target by 2050.

"Air transport must become an industry that does not pollute," he said. "The Wright brothers turned that dream into reality and look at where we are now."

Bisignani urged the aerospace leaders such as China, the US and Europe to coordinate basic research on a zero-emissions aircraft and then compete to develop products based on it.