The SITA 2024 Air Transport IT Insights report highlights that funding in airline data know-how has reached its highest degree since 2019, fueled by report income for airways and an increase in passenger numbers. For 2024, airline IT spending is estimated to be $37 billion, a rise from $35 billion in 2023. As a share of income, IT spending rose two share factors to three.8%, recovering from a decline from 4.1% in 2022 to three.6% in 2023.
Moreover, the report signifies that 72% of IT executives on the high 379 passenger airways anticipate additional will increase in know-how spending in 2025. Respondents recognized cybersecurity, knowledge evaluation and sharing, and passenger administration as the first areas the place they plan to spend money on know-how.
Relating to operational priorities, 55% of airline IT professionals cited airline and Operations Management Middle techniques as the highest three funding areas, adopted by IT infrastructure at 42% and cloud providers at 31%.
Over the subsequent 12 months, respondents indicated that their main funding focus will probably be on maximizing the worth derived from knowledge. The highest two spending priorities are generative synthetic intelligence at 56% and enterprise intelligence software program at 48%.
Because the report highlights, airways need to solidify their digital transformation methods. This goals to create a powerful basis for technological improvements corresponding to AI.
Confirming this pattern, British Airways lately up to date its two-year, £7 billion transformation plan, which allocates £100 million particularly for automation, AI, and machine studying initiatives.
Southwest Airways has allotted $1.7 billion to spend money on know-how in 2024, specializing in upgrades, upkeep, and cloud migration.
Relating to their AI initiatives, 1 / 4 of airways reported gathering and integrating knowledge utilizing AI. Moreover, 42% are analyzing methods to prepare their knowledge to assist AI tasks, whereas 25% have begun coaching AI techniques on their knowledge.
In keeping with the report, AI’s main utility within the airline business is bettering inside operational efficiencies.
IT professionals have recognized their main challenges within the business. In keeping with the info, 31% of respondents highlighted the necessity for agile and versatile work buildings, whereas 30% pointed to cyber threats as a major concern. Moreover, 23% of pros talked about the significance of using knowledge to boost operational effectivity, and one other 23% referred to the challenges associated to knowledge maturity.
The report additionally revealed a rise in airways implementing a single token answer, rising from 17% to 24%. Whereas the adoption of biometric applied sciences has remained secure, it’s noteworthy that 75% of airways plan to implement biometrics by 2027.
