KUALA LUMPUR - The world's airlines have committed to achieve carbon neutral growth by 2020, the head of the global aviation body IATA said on Monday.

"Demand will continue to increase, but any expansion of our carbon footprint will be compensated," Giovanni Bisignani told the annual general meeting of the International Air Transport Association in the Malaysian capital, adding the decision was taken on Sunday by the board.

But Bisignani said wide cooperation was needed from allied industries and governments.

"Air navigation service providers must make it possible to fly even more effectively. Fuel companies must supply eco-friendly fuels and governments must give us access to credits in global carbon markets."

The aviation body chief said the industry would cut emissions by seven percent this year, five percent because of reduced capacity as a result of the economic crisis and two percent as a result of a strategy to reduce emissions.

IATA groups 230 of the world's airlines.