IT spend for airlines increases to $34 billion in 2023: SITA

Feb 7, 2024



Mumbai: airports And Airlines saw IT expenses Year-on-year growth is projected to reach $10.8 billion and $34.5 billion in 2023, respectively, according to Sita'S 2023 The Air Transport IT Insights report was released on Wednesday. Two-thirds of airport and airline CIOs expect continued growth in 2024. Sustainability is also high on the agenda with the industry setting milestones for carbon reduction as well as regulations on emissions.
“Airports also boosted IT spending as a percentage of revenue in 2022 and 2023, while the business benefited from increased travel demand,” said the report from SITA, which provides IT solutions to the air transport industry. ” The survey was conducted from August to November 2023 and represents the views of more than 250 senior airline and airport executives, covering a quarter of global passenger traffic.
According to the report, airlines and airports have made progress in optimizing the passenger experience, with more than half implementing IT to improve efficiency at check-in, bag tag and boarding in 2023. The report states, “Biometrics are becoming commonplace to help prevent congestion, with 70% of airlines expecting biometric ID management by 2026, and 90% of airports leading programs or R&D in this area.” “Are investing.”
Business intelligence is the largest area of ​​technology investment for airlines over the coming three years, comprising 73% of investment in key programs, it said, adding that nearly two-thirds of airports and airlines collect and integrate data, and generative With the rise of Artificial Intelligence (AI), they are now looking to AI and machine learning to leverage this data and generate insights. The report notes that most people cite “the use of data to improve operational efficiency” as a business challenge at least to some extent, finding that 97% of airlines and 82% of airports Investing in AI by 2026.
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 areas, airlines and airports have experienced better performance than in the past. “We have learned from the crowds and disruptions seen in the U.S.” Two years. Advanced data sharing and analysis tools will allow them to unify stakeholders and identify opportunities for greater efficiency and seamless operations. Solutions like total airport management and BI for passenger processing provide airports and airlines with real-time information in managing assets and passenger flows, allowing a quick, collaborative response to any disruption.
By 2026, more than 90% of airlines plan to install IT to boost the efficiency of flight operations and aircraft turnaround. More than half have implemented IT to optimize aircraft taxiing and both the takeoff/landing and cruise phases of flights, with almost all expected to be in place by 2026.
“In keeping with the industry’s ambitions to achieve net-zero CO2 emissions by 2050, airlines and airports are taking essential steps towards reducing their carbon footprint by accurately monitoring energy consumption and emissions,” Lavorel said. “And adopting digital tools to adapt.”



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