Airlines, Airports Increase IT Spend To Improve Passenger Journey, Meet Sustainability Goals
SITA’s report finds airlines and airports harnessing the power of biometrics, data and emissions reduction technologies.
Airports and airlines have been increasing their spending on information technology year-on-year into 2023, reaching an estimated $10.8 billion and $34.5 billion, respectively, according to SITA’s 2023 Air Transport IT Insights report.
Over two-thirds of airport and airline chief information officers are expecting continued growth into 2024, the report said.
Airports also boosted IT spending as a percentage of revenue in 2022 and 2023, even as businesses benefitted from an uptick in travel demand, signalling the role technology will play in the future travel experience.
Aviation Chief Investing Officers’ key investment priorities include a biometrically enabled passenger journey, leveraging data to unlock operational efficiencies, and green solutions to optimise energy consumption and emissions, the report showed.
Optimised Operations
Airlines and airports are taking steps to optimise the passenger experience, with over half implementing IT to improve efficiency across check-in, bag tag and boarding in 2023. According to the report, 70% of airlines are expecting to have biometric ID management in place by 2026, and 90% of airports are investing in major programmes or R&D in this area.
CIOs are looking to supplement passenger processing advancements with innovative solutions on the operations side. To improve efficiency, protect operations against disruption and streamline processes for passengers and staff, CIOs are embracing IT solutions for business intelligence, artificial intelligence and data sharing.
BI is the biggest area of technology investment for airlines in the coming three years, with 73% investing in major programmes. Nearly two-thirds of airports and airlines collect and integrate data, and with the rise of generative AI, they are now looking to AI and machine learning to leverage this data and generate insights. Citing the “use of data to improve operational efficiency,” 97% of airlines and 82% of airports are investing in AI by 2026.
"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,” SITA Chief Executive Officer David Lavorel said.
“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,” Lavorel said.
Smart IT To Improve Sustainability
Sustainability is also high on the agenda, and CIOs are setting their sights on technology solutions that can deliver concrete emissions reductions.
According to the report, by 2026, over 90% of airlines plan to have IT in place to boost the efficiency of flight operations and aircraft turnaround. More than half have implemented IT to optimise aircraft taxiing and the takeoff/landing and cruise phases of flights, with nearly all expecting to have this in place by 2026.
On the airport side, building and energy management systems are a key priority for offering a unified view of emissions and opportunities to reduce them. Investment in energy management systems is expected to grow, with over half of airports planning this by 2026.
“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 optimisation of energy consumption and emissions,” Lavorel said.
