The global aviation industry is gaining from lower oil prices, which are reducing the cost of kerosene, according to the head of the International Air Transport Association.

The Director General of the IATA, Willie Walsh, stated that falling oil prices are helping to lower airline ticket costs, as reduced fuel expenses make it cheaper for airlines to operate.

“It’s typically our single biggest cost, so it would help to offset any weakening demand if we were to witness a slowdown,” Walsh said in an interview with Bloomberg Television at IATA’s annual general meeting in New Delhi.

“It also tends to have an impact on pricing. There’s almost a direct correlation between the price of oil and and the price of airline tickets.”

Airlines are becoming more wary about future demand as global economic disruptions, triggered by President Donald Trump’s tariffs, have dampened travel.

At the same time, the weaker economic outlook has led to lower oil prices, giving carriers a cost advantage.

Walsh pointed out that while cheaper fares often encourage more travel, they also “clearly reduce overall industry revenue.”

Global aviation leaders are gathering in New Delhi over the coming days to discuss the industry’s current state.

Walsh is scheduled to present his official forecast for airline profitability and revenue on Monday.