Airlines and airports invest more in IT for better passenger experience & sustainability

Wednesday, February 7, 2024

Publication of the 2023 Air Transport IT Insights report by SITA reveals a notable uptick in IT expenditure for both airports and airlines compared to the previous year, with estimated spending reaching 10.8 billion USD and 34.5 billion USD respectively. This trend is anticipated to continue into 2024, as indicated by over two-thirds of airport and airline Chief Information Officers (CIOs). Despite benefiting from increased travel demand, airports have increased their IT spend as a percentage of revenue in 2022 and 2023, underscoring the pivotal role of technology in shaping the future of travel.

Key investment priorities for aviation CIOs include enhancing the passenger journey through biometric solutions, leveraging data for operational efficiencies, and adopting green technologies to minimize energy consumption and emissions.

Significant progress has been made in enhancing the passenger experience, with a majority of airlines and airports implementing IT solutions to streamline processes such as check-in, bag tagging, and boarding. Biometric identification systems are becoming increasingly prevalent to alleviate congestion, with a significant proportion of airlines and airports expected to have such systems in place by 2026.

Looking beyond passenger-facing enhancements, CIOs are now focusing on operational efficiency and resilience. Investments in business intelligence (BI), artificial intelligence (AI), and data sharing are aimed at improving efficiency, enhancing operational resilience, and simplifying processes for both passengers and staff.

BI emerges as a major area of technology investment for airlines in the coming years, with a majority investing in significant programs. The integration of data collection and generative AI are enabling airlines and airports to harness data effectively and derive actionable insights, with the majority investing in AI by 2026 to address operational challenges.

David Lavorel, CEO of SITA, said: “As we approach a full recovery of passenger demand for air travel, with domestic travel even surpassing pre-pandemic levels in some regions, airlines and airports have learned from the congestion and disruptions seen in the past two years. Advanced data sharing and analytics tools will allow them to unite stakeholders and identify opportunities for greater efficiency and leaner operations. Solutions like total airport management and BI for passenger processing provide airports and airlines real-time insight into the management of assets and passenger flow, allowing for agile, collaborative responses to any disruptions.”

Sustainability is also a key focus area, with CIOs aiming to implement technology solutions to reduce emissions. By 2026, a significant proportion of airlines plan to enhance flight operation efficiency, while airports prioritize building and energy management systems to achieve emissions reduction targets.

“With industry ambitions to achieve net-zero CO2 emissions by 2050 in mind, airlines and airports are taking necessary steps towards reducing their carbon footprint, adopting digital tools for accurate monitoring and optimization of energy consumption and emissions,” Lavorel added.

The findings of the SITA 2023 Air Transport IT Insights report, based on input from over 250 senior airline and airport executives, provide valuable insights into the evolving landscape of the aviation industry.

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• SITA: Air Transport IT investments soar, focus on sustainability