Which organization sets industry standards in aviation?

The International Air Transport Association (IATA) is a key organization that sets industry standards in aviation, particularly for airlines and air transport. IATA plays a crucial role in formulating guidelines, regulations, and best practices that facilitate safe, secure, and efficient air travel on a global scale. It works to promote a standardized approach to various operational aspects within the aviation industry, including ticketing, baggage handling, and revenue management.

This organization's influence extends worldwide, ensuring that airlines operate under common protocols which not only enhance safety but also improve the passenger experience. IATA also engages in advocacy and represents airlines' interests to governments and regulatory bodies, further solidifying its position as a standard-setting entity in the aviation sector.

While the other organizations mentioned play important roles in aviation — for example, the FAA focuses on regulating and overseeing civil aviation in the United States, the NTSB investigates aviation accidents, and American Airlines is an airline company — none are primarily dedicated to setting industry-wide standards like IATA. Thus, IATA is the most appropriate answer regarding setting industry standards in aviation.